THETRADETECH DAILY
key takeaways
THE OFFICIAL NEWSPAPER OF TRADETECH 2019
Trading venues
Nasdaq Copenhagen launches new
closing price trading phase
MARKET PARTICIPANTS TRADING NASDAQ COPENHAGEN AND FIRST NORTH DENMARK MARKETS WILL HAVE TEN-MINUTE
WINDOW TO TRADE AT CLOSING AUCTION PRICE.
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asdaq Copenhagen has introduced a
ten-minute phase for market participants to
continue trading after the lit order book closing
auction, following increased investor demand.
Market participants trading Nasdaq Copen-
hagen and First North Denmark markets will
be able to send orders during the ten-minute
trading window, known as Trading@ClosingPrice,
which will be continuously matched at the clos-
ing auction price.
“Trading@ClosingPrice has been on the wish
list for some time in the Danish market from
both sell- and buy-side investors alongside a
considerable share of our non-Nordic market
participants,” said Nikolaj Kosakewitsch, presi-
dent of Nasdaq Copenhagen and vice president
of European equity sales. “Trading@ClosingPrice
is a trading functionality that creates additional
liquidity and matching opportunities in a lit,
monitored and regulated environment.”
Nasdaq added that closing auction turnover on
the Danish stock exchange currently accounts
for a growing share of the average daily turnover.
The new closing price trading phase will provide
alternative opportunities for investors seeking
end of day price.
Rolf Mølkjær, head of trading at Nordea Asset
Management, commented that the ten-minute
phase will also increase matching opportunities
for investors are not necessarily looking to enter
their full order size into the closing auction.
“Instead, this offers an opportunity to continue
to match more volumes at the fixed price set in
the closing auction. In short, this is an excellent
new opportunity for investors who want to tap
additional liquidity after a fixed and fair auction
equilibrium price has been found and thereby get
the opportunity to get their bigger sized order
fully done on the day,” Mølkjær added.
Regulation
Technical issue sees ESMA delay crucial
MiFID II systematic internaliser data
SYSTEMATIC INTERNALISER DATA DUE TO BE PUBLISHED ON 30 APRIL HAS BEEN DELAYED BY THE EUROPEAN MARKETS
REGULATORY AFTER A TECHNICAL ISSUE.
A
technical issue has forced the EU financial
regulator to delay the publication of crucial
data for systematic internaliser (SI) determina-
tion that market participants need to comply
with MiFID II in Europe.
The European Securities and Markets Author-
ity (ESMA) was due to publish the SI regime
data for equity and equity-like instruments and
bonds on 30 April, but the “technical issue” has
delayed publication until 3 May at the latest.
No further details were given as to the nature
of the technical issue.
“Due to a technical issue, ESMA will delay the
publication of the SI regime data for equity,
equity-like instruments and bonds. This publi-
cation will now occur by the end of next week,”
ESMA said in a statement.
The UK’s departure from the European Union
has led to uncertainty on the timeline for
the publication of various datasets required
under MiFID II. Initially, ESMA said that in the
event of a ‘no-deal’ Brexit scenario on 12 April,
calculations for the SI regime and bond liquidity
scheduled for 1 May would be paused, and
would resume again on 1 August this year.
But following the UK’s Brexit extension until
31 October, ESMA clarified that any references
to the 12 April in existing measures on a ‘no-
deal’ scenario should be read as reference to
31 October instead. The delay to Brexit meant
that ESMA was due to publish the crucial SI
determination data on 30 April.
Incomplete and inadequate datasets forced
ESMA to delay the SI regime for derivatives and
other non-equity instruments under MiFID II
twice since the regulation was implemented on
3 January 2018. The derivatives SI calculations
were initially due to be published on 1 August
2018, but concerns around data quality meant
the publication was delayed until February this
year, and then again until 2020.
The MiFID II SI regime requires investment
firms to assess whether they are SIs for various
assets on a quarterly basis, based on data from
the prior six months of activity. If firms exceed
thresholds from the calculations, they are con-
sidered an SI under MiFID II and have to fulfil SI
obligations.
Issue 2
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