Fixed Income
Fixed Income
Exchange notice - Genium INET Fixed Income - 2019.04.12
New issuing auction functionality
After dialogs between Nasdaq Copenhagen and the Danish issuers, the following
changes to the issuing auction functionality will be introduced to increase the
efficiency of the issuing auction markets.
I: Flexible IPMO session
II: Directed Issuing Auction Request transaction
III: Minimum bid amount
Flexible IPMO Session
This change will make the transition from the Auction session (where market
makers are inserting their orders) to the Uncross (where orders are matched)
more flexible. The issuer will be able to start the Uncross at any time during
the IPMO session (where only the issuer is allowed to manage orders), i.e. when
the issuer is ready to run the auction he/she may initiate the Uncross sending
an Initiate Uncross transaction (UC120).
The maximum length of the IPMO session will be 10 minutes. If the issuer hasn’t
started the Uncross before the end of the IPMO session, the Uncross will run
automatically at that time.
Directed Issuing Auction Request Transaction
To enable the option to address specific market makers to participate in an
auction Nasdaq introduces the possibility to specify exactly which market
maker(s) that shall receive the Issuing Auction Request. A new Directed Issuing
Auction Request transaction (UC119) will be added where issuers can specify the
market markers to participate in the auction. The issuer may address all market
markers (participants) having access to the Auction market by leaving the
participant field empty, i.e. it will then work exactly as the current Issuing
Auction Request.
The current Issuing Auction Request transaction will still be active and can be
used by the issuers to initiate auctions.
Minimum Bid Amount
It will be possible to add information about the minimum bid amount in the new
Directed Issuing Auction Request. If the issuer fills in a minimum bid amount
the market makers’ orders must at least have this amount. Orders with amounts
less than the specified minimum bid amount will be rejected.
Implementation
The above mentioned new functionalities will have technical go-live in the
5.0.0225 release. The current issuing auction functionality will until further
notice remain available and unchanged. The new functionality will be activated
for Production use when issuers and market makers are ready to use it, which we
expect to be late summer 2019.
Testing
The above functionalites will be available for testing in External test EXT4
from 7 May 2019 and in External test EXT3 from 21 May 2019.
Questions
For questions about this Exchange Notice please contact:
Poul Erik Egeberg, poul.erikegeberg@nasdaq.com