NASDAQ OMX (NASDAQ: NDAQ) Nordic will implement changes in cash equity market pricing structure for members on its Danish, Finnish and Swedish markets effective of December 2, 2013. The order to trade ratio will be amended from 250:1 to 100:1.
The fee on excessive order entry was originally introduced on July 1, 2011 and applied in case of order to trade ratio exceeding 250:1. NASDAQ OMX Nordic now revises the model for calculating an excessive order entry.Orders above a weighted order to trade ratio of 100:1 will be subject to a surcharge in order to maintain and achieve improvements in the quality of displayed liquidity.
“These changes are made to support the aim of NASDAQ OMX Nordic to protect investors and the public interest by introducing measures to improve the equity trading and IPO climate in Sweden, Denmark and Finland. The excessive order entry fee is designed to reduce the number of non-actionable orders in the market, thereby promoting greater order interaction and increasing the quality of market data,” said Lauri Rosendahl, Head of Equity and Derivatives Market at NASDAQ OMX Nordic.
The weighted order-to-trade ratio is calculated on a monthly basis for each of the three Nordic exchanges separately. The weight of an order depends on its proximity to the BBO price at the time of entry. The fee for orders which exceed the weighted order-to-trade ratio remains the same and is DKK 0.07 per order on the Danish market, EUR 0.01 per order on the Finnish market, and SEK 0.09 per order on the Swedish market.