IT – INET Nordic – Regulatory suspensions related to double volume cap mechanism as of April 13, 2018 (20/18)

When MiFID II double volume cap (DVC) is reached, Nasdaq Nordic, with the exception of Nasdaq Iceland, and Nasdaq Baltic are required to suspend the use of reference price waiver and one limb of negotiated transaction waiver for six months. Please see detailing the measures Nasdaq Nordic and Nasdaq Baltic will take in relation to DVC mechanism.

Note that DVC measures described here do not impact orders equal to or greater than LIS threshold sent to Nordic nor any Manual Trades where trade size is equal to or greater than LIS threshold. This kind of trading continues to be available.

Details:

In addition to shares subject to earlier DVC suspensions, additional shares are impacted as of April 13, 2018, and valid through October 13, 2018. Additional suspension on Nasdaq Nordic impacts total of 11 shares: 2 shares traded on Nasdaq Helsinki and 4 shares traded on Nasdaq Stockholm, as well as 5 Norwegian shares traded on First North Sweden, see table below.

ISIN Instrument Order book ID Exchange Liquidity status LIS threshold in EUR FI Suominen Oyj 24364 Nasdaq Helsinki Not Liquid 60000 FI Uponor Oyj 24385 Nasdaq Helsinki Liquid 200000 SE Haldex 817 Nasdaq Stockholm Not Liquid 100000 SE Hoist Finance 107904 Nasdaq Stockholm Liquid 200000 SE Opus Group 35920 Nasdaq Stockholm Not Liquid 100000 SE Rezidor Hotel Group 37352 Nasdaq Stockholm Not Liquid 100000 NO Austevoll Seafood 88802 First North Sweden Liquid 200000 NO Borregaard 90273 First North Sweden Liquid 200000 NO Kongsberg Gruppen 88861 First North Sweden Liquid 200000 NO SpareBank 1 SR-Bank 88907 First North Sweden Liquid 200000 NO XXL 102920 First North Sweden Liquid 200000

 

List of all impacted Instruments with further details is available in excel format, attached to this IT Notice. Column New/ Updated indicates if the share has been added or if there is an update to the DVC status.

Equivalent suspensions in these additional Instruments are made in all trading venues in EU due to the total percentage of trading under these waivers having exceeded 8%. On Nasdaq Nordic trading venues, suspension impacts Nordic trading in Instruments, and in case Instrument’s liquidity status is Liquid, reporting of certain Manual Trades below large in scale (LIS) thresholds. As a consequence,

  • Nordic Order below LIS will be rejected (default behavior) or converted to Auction on Demand Order if that is preferred by Member (preference for conversion to AOD to be requested via using port request/change form or Nordic Workstation change form);
  • all routing strategies where routed order below LIS threshold either pings or is being posted to Nordic will skip Nordic in the routing logic;  and
  • in case Instrument’s liquidity status is Liquid, Manual Trades reported with Trade Types ‘Standard Trade’ and ‘Non-Standard Settlement Trade’ will be rejected, unless size of the Manual Trade is equal to or greater than LIS threshold for that Instrument. Reporting of Manual Trades with other Trade Types in Instruments with liquidity status Liquid continues to be available. Please also note that for Instruments where liquidity status is Not Liquid, measures related to DVC do not impact the reporting of Manual Trades and all Trade Types continue to be available.

In addition to the regulatory suspensions, Nasdaq Nordic and Nasdaq Baltic may also by their own decision cease offering Nordic trading and reporting of Manual Trades in scope of DVC in order not to breach the 4% cap. However, for time being until further notice, Nasdaq Nordic and Nasdaq Baltic intend not to make such a decision.

INET Nordic Market Model:
Measures related to the double volume cap mechanism are described in INET Nordic Market Model, available on

Support

For technical questions, please Nasdaq Cash Equity Operations:
Tel: +46 8 405 6410,
 

Best regards,
Nasdaq Nordic and Nasdaq Baltic

Nasdaq Copenhagen, Nasdaq Helsinki, Nasdaq Iceland, Nasdaq Riga, Nasdaq Stockholm, Nasdaq Tallinn and Nasdaq Vilnius are respectively brand names for Nasdaq Copenhagen A/S, Nasdaq Helsinki Ltd, Nasdaq Iceland hf., Nasdaq Riga AS, Nasdaq Stockholm AB, Nasdaq Tallinn AS and AB Nasdaq Vilnius. Nasdaq Nordic represents the common offering by Nasdaq Copenhagen, Nasdaq Helsinki, Nasdaq Iceland and Nasdaq Stockholm. Nasdaq Baltic represents the common offering by Nasdaq Tallinn, Nasdaq Riga and Nasdaq Vilnius.

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