IT – INET – Direct Away Market Access via NASDAQ OMX Exchange and Clearing Services AB’s technical service - (13/14)
As communicated in IT Notice 92/13, NASDAQ OMX Nordic is planning to broaden its execution services for its customers to get a cost effective direct away market access by using existing NASDAQ OMX Nordic infrastructure and connectivity.
The Direct Away Market Access is offered by NASDAQ OMX Exchange and Clearing Services AB, and is a technical service, enabling
- the use of direct routing strategies
- the use of the on-behalf-of functionality
The service utilizes FIX connectivity to INET Nordic trading system and NASDAQ OMX Smart Order Routing servic[1]. Direct routing strategies are included in the INET Nordic FIX protocol specifications and Nordic Workstation.
Direct routing strategies in Direct Away Market Access service:
- XOSL – direct routing to Oslo Børs (available in INET PROD as of December 9, 2013)
- BATE – direct routing to BATS Europe
- CHIX – direct routing to CHI-X
- TRQX – direct routing to Turquoise
- BURG – direct routing to Burgundy
These routing strategies route the order directly to a specified Away Market. A direct strategy order does not interact with NASDAQ OMX Nordic order books or other Away Markets books and therefore it may only be posted on the respective specified Away Market book. The trade at the specified Away Market is executed in the name of the Introducing Broker, unless the customer and the Introducing Broker have agreed to use the on-behalf-of functionality.
Based on the away market trade executed by the Introducing Broker, an on-exchange trade will be automatically created at the relevant NASDAQ OMX exchange.
On-behalf-of functionality in Direct Away Market Access service
The on-behalf-of functionality enables the customer’s orders to be introduced in the customer’s own name at the Away Market. This functionality is limited to routing to Oslo Børs [2]. The on-behalf-of functionality is not limited to the XOSL routing strategy but is applied in connection with all routing strategies that route to Oslo Børs in the Smart Order Routing Service provided by NASDAQ OMX Nordic.
With the on-behalf-of functionality, all executions resulting from orders sent to Oslo Børs will be made in the name of the customer and will follow the applicable processes and regulations of Oslo Børs (including for example clearing and post trade publication). There will be no on-exchange trade created at relevant NASDAQ OMX exchange.
Instruments in Direct Away Market Access service
All shares admitted to trading on NASDAQ OMX exchanges (NASDAQ OMX Stockholm AB, NASDAQ OMX Helsinki Oy, NASDAQ OMX Copenhagen AS and the respective First North markets) that are routable and traded on the relevant Away Markets are eligible in the Direct Away Market Access service. Norwegian shares traded on NASDAQ OMX Stockholm and First North Stockholm are eligible as well.
How to subscribe for the service
NASDAQ OMX Exchange and Clearing Services AB will provide technical service to Customer in accordance with a separate service agreement. The members of the NASDAQ OMX exchanges have the possibility to sign up for the service. Please contact your NASDAQ OMX representative for further information.
Protocol changes
The updated version of the FIX Order Entry specification is available under the “Future protocol versions” section at Member Extranet.
Direct strategies follow the NASDAQ OMX Smart Order Routing service logics.
- The Away Market is specified in the strategy field in the order entry (TAG 76)
- The instruments’ applicable Away Markets can be identified from the GCF/TIP BD Tradable message.
- The Execution Report relays back the specified Away Market (TAG 9882).
Nordic Workstation
Nordic Workstation will support the new direct away market routing strategies.
Test access
Please contact Member Services ms.inet@nasdaqomx.com in order to enable direct routing strategies in test environment.
Time schedule
• INET Test (OTF) – February 17, 2014
• INET Prod – March 10, 2014 (pending regulatory review)
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Questions and feedbackFor further information concerning this notice, please contact Technical Support at +46 8 405 6410, operator@nasdaqomx.com.
Best regards,
NASDAQ OMX Nordic |
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“NASDAQ OMX Nordic” is not a legal entity but describes the common offering for members of the NASDAQ OMX exchanges in Helsinki, Copenhagen, Stockholm, and Reykjavik. |
[1] Smart Order Routing Service requires that the customer has membership at the relevant NASDAQ OMX Nordic exchange from which orders may be routed. Smart Order Routing service agreement with relevant NASDAQ OMX Nordic exchange is required.
[2] Requires membership at Oslo Børs and a separate agreement between the customer and the Introducing Broker.
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