Nasdaq Elect

Overview

Nasdaq Elect, is functionality designed to improve order book quality by giving market participants the ability to provision additional liquidity with their resting orders to specific counterparty groups.

Operating in tandem with new block trade order types — Nasdaq Discrete and Nasdaq Mid — Elect allows market participants to facilitate meaningful block sized executions at preferred prices that meet their liquidity needs. Elect further enhances these orders by allowing liquidity providers to specify the types of counterparties eligible for Discrete and Mid orders including banks, broker-dealers and primary dealers, while maintaining full anonymity.

  • Nasdaq Discrete: Allows the trader to enter price discretion and additional size with their displayed limit order
  • Nasdaq Mid: Allows the trader to enter a non-displayed block-sized order that floats at the mid-point price in the market

Nasdaq Elect Pilot Program

Based on the success of the pilot program, Nasdaq Elect functionality now includes all U.S. Treasuries Benchmark products including the 2Y, 3Y, 5Y, 7Y, 10Y and 30Y bond as of February 1, 2016.

Nasdaq Elect began as a pilot program that ran through the end of 2015. The pilot program was aimed at the 2Y Benchmark product.

Nasdaq Elect Pilot Program Parameters¹ 2Y 3Y 5Y 7Y 10Y 30Y
Nasdaq Discrete, Mid & Elect Available? Yes Yes Yes Yes Yes Yes
Nasdaq Elect Reserve Minimum Size (MM) 25 15 10 5 5 5
Nasdaq Elect Reserve Minimum Display Size (MM) 2 2 2 2 2 2
Nasdaq Discrete Minimum/Size Increments 25/1 15/1 10/1 5/1 5/1 5/1
Nasdaq Mid Minimum Size/Size Increment 25/1 15/1 10/1 5/1 5/1 5/1
¹Nasdaq Elect Pilot Program, Nasdaq Discrete and Nasdaq Mid parameters values applicable to the pilot program only. Final values will be determined at the completion of the program.

BENEFITS TO LIQUIDITY PROVIDERS: BENEFITS TO LIQUIDITY RECEIVERS:
  • Enhanced Liquidity Preferences: Liquidity providers looking to add discretion or additional reserve size to the market will be able to minimize their market exposure by choosing the participant groups they wish to interact with.
  • Quality Executions: Liquidity providers can provide greater liquidity without adverse market impact.
  • Fee-Free: Nasdaq Elect will have no fees during the pilot period.
  • Automatically Receive Additional Liquidity: Clients within the Elect group specified by the Liquidity provider that satisfy minimum size requirements will simply trade discretely with improve liquidity.
  • Ease of Use: Elect transactions will be delivered to traders and associated STP feeds consistent with standard trade confirmations.

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Nasdaq Elect Fact Sheet



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Pilot Program Details



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