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IT - INET Nordic - Nasdaq Iceland - Introduction of Trading at Closing Price (32/22)

Nasdaq Iceland is planning to introduce Trading at Closing Price (T@CP) on the Icelandic equity market. Trading at Closing Price is a 10 minute trading phase after the Lit Order book closing auction, where members may optionally continue to trade. Orders sent to this trading phase match continuously at the Closing auction price. The functionality is currently available on the Nasdaq Copenhagen and First North Denmark markets and will be introduced for shares traded on the Nasdaq Iceland and First North Iceland markets. The effective date for this change in production is September 12, 2022. The functionality will be available for testing in the INET NTF environment as of June 20, 2022.

For more detailed information regarding the T@CP functionality, please refer to Appendix AB in the INET Nordic Market model here.

Trading at Closing Price functionality

The T@CP phase lasts for 10 minutes, and ends in Post Trade phase.

The T@CP trading phase starts after the Closing auction. The phase is associated to the corresponding Order book and the Market Segment it belongs to. T@CP will be introduced for Shares having a Closing auction and traded on the following markets:

• Nasdaq Iceland;
• First North Iceland

Trading Schedule

The T@CP phase starts right after the Lit Order book uncross and ends exactly:

• Nasdaq Iceland and First North Iceland - 16:40:00 CET Standard*

^{*During CET daylight savings time the T@CP phase ends one hour later (at 17:40:00 CET) because Iceland does not adopt daylight savings time.}

T@CP is an optional state, which means that orders not opting in to this trading session will not be affected; hence it will work as today in the Post trade (after Closing Auction uncross 16:29:30-16:30 CET**).

^{**During CET daylight savings time the uncross happens one hour later (at 17:29:00-17:30 CET) because Iceland does not adopt daylight savings time.}

T@CP Matching Model

During the T@CP trading phase continuous auction order book trading system matches Orders that are priced at or more generous than the Closing auction price at the Closing auction. Such Orders will participate to this trading phase at the Closing auction price. 

Orders with Limit prices less generous than the Closing auction price will be rejected and will not take part to this trading phase.

In order for matching to commence the Closing auction must have generated a closing price.

Member participation

It is possible to opt in T@CP for all Orders over a specific MPID and User ID combination and in such case the T@CP Condition will be activated automatically for all eligible Orders. Furthermore, there is a possibility to configure Member and User ID combination so that orders are not transferred by default, but new orders entered during the T@CP phase will be accepted without using the separate order condition.

In addition to the above, there is an alternative to opt out from the T@CP phase in the Member/User level configuration and in such case no order transfer or new order entries to T@CP will be accepted by the trading system.

Members can choose (submitting form in MemberPortal) the following configuration alternatives on Member/User level, defining the level of participation in the T@CP phase:

T@CP participation table 

   *)       With MPID/User setting Y, the “not present” T@CP order condition at order entry shall transfer resting orders to T@CP phase and accept the orders to T@CP when entered during the T@CP phase.

**)     With MPID/User setting S, the resting orders shall not be transferred to T@CP, while order entry during T@CP is accepted. 

INET Nordic Market Model

The changes will be reflected in the INET Nordic Markel Model, effective on September 12, 2022 and published on Rules and Regulations for the Nordic Markets.

Nasdaq Nordic Member Rules

The Trading at Closing price phase for Nasdaq Iceland will be reflected in the Nasdaq Nordic Member Rules, effective September 12, 2022 and published on Rules and Regulations for the Nordic Markets.

Time schedule

• INET Test (NTF) and GCF TST4 – June 20, 2022
• INET and GCF Production – September 12, 2022

Questions and feedback

For further information concerning this IT-Notice please contact:

Nasdaq Iceland Exchange

Tel: +354 525 2850

E-mail: exchange.ice@nasdaq.com

Technical support

For technical questions, please contact Nasdaq Cash Equity Operations:

Nasdaq Cash Equity Operations:
Tel: +46 8 405 6410
E-mail: operator@nasdaq.com