Nasdaq OMX Europe today announced that it will provide order routing functionality to non-displayed markets from its "lit" (displayed) book, including routing to Neuro Dark.
This new functionality will also enable order routing directly from NEURO Dark to other non-displayed markets and provide participants with greater opportunity for execution across multiple pools of non-displayed liquidity.
In addition, NEURO Dark will now use the European Best Bid and Offer (EBBO)* as the reference price -- the price used to determine what price a security should execute. Using the EBBO will provide greater opportunity for price improvement within NEURO Dark by including the quotes from alternative venues, such as MTFs and exchanges.
Charlotte Crosswell, President of NASDAQ OMX Europe, commented, "In this increasingly fragmented market, firms are looking for more efficient ways to access liquidity. Order routing is a key differentiator for NASDAQ OMX Europe and we are committed to providing our customers with the most effective routing strategies. Extending our routing offering to dark pools will mean that customers can now gain access to both lit and dark venues through one single connection, greatly improving their ability to seek out new liquidity."
NEURO Dark currently trades approximately 900 of the most actively traded European blue chip shares.
The new functionality is due to go live in July, subject to the conclusion of ongoing discussions with the FSA.
* EBBO pricing is determined by the best bid and offer price available on the primary markets or MTFs.