Nasdaq Launches PureStream in Europe – A new tool for trajectory trading

Rhea-AI Summary

Nasdaq (NDAQ) has announced the planned launch of PureStream, a volume-based trajectory trading solution for EU shares on Nasdaq Europe, expected in Q1 2025 pending regulatory approval. PureStream, already available in the US and Canada, offers a venue-operated service for trajectory trading with conditional indications of interests, favoring interactions between institutional investors with common execution goals.

The solution aims to improve price and liquidity discovery using open-ended liquidity transfer rates, allowing institutional investors to minimize market impact and automate parent order execution by trading a percentage of future market volume at VWAP. PureStream on Nasdaq Europe will provide greater choice of trade execution mechanisms and help institutional investors navigate the European trading landscape.

Positive

• Expansion of PureStream to European markets, potentially increasing Nasdaq's market share
• Improved trading solution for institutional investors, potentially attracting more clients
• Enhanced price and liquidity discovery process, potentially leading to better market efficiency

Negative

• None.

STOCKHOLM, Oct. 08, 2024 (GLOBE NEWSWIRE) -- Nasdaq (Nasdaq: NDAQ) today announced the planned launch of PureStream, a new volume-based trajectory trading solution giving clients access to EU shares on Nasdaq Europe*. PureStream is already available in the US and Canada and is expected to launch on Nasdaq Europe in Q1 2025, pending regulatory approval.

PureStream on Nasdaq Europe is designed to offer clients a venue-operated service for trajectory trading with conditional indications of interests, favoring interactions between institutional investors with a common execution goal, while enabling access to latent algorithmic liquidity in line with each strategy’s volume goals.

"PureStream and Nasdaq have a strong partnership,” said Armando Diaz, CEO of PureStream. “We are fully committed to advancing streaming globally, and we are very excited about Nasdaq’s introduction of PureStream in Europe which marks a significant milestone.”

The solution significantly improves the process of price and liquidity discovery by using open-ended liquidity transfer rates. This allows institutional investors to minimize market impact and utilize conditional trade negotiation to automate their parent order execution by trading a percentage of the market's future volume at the market’s volume-weighted-average-price (VWAP).

"We are very excited to bring PureStream to Nasdaq Europe," said Nikolaj Kosakewitsch, Senior Vice President and Head of European Equities & Derivatives at Nasdaq. "This launch underscores our commitment to offering world-class platforms that support the evolving needs of the global capital markets. PureStream on Nasdaq Europe will provide greater choice of trade execution mechanisms to our clients and help institutional investors navigate the European trading landscape.”

PureStream on Nasdaq Europe is designed to offer a new tool to buy- and sell-side trading firms when executing long-term trajectory orders by pairing trading interests in open-ended streaming batches. This removes traders’ reliance on sourcing liquidity on a single point-in-time basis and drives better execution outcomes when working larger trading interest over time.

Nasdaq remains dedicated to driving innovation and excellence in the financial industry. The introduction of PureStream services to Nasdaq European markets, marks a significant step towards achieving this goal, reinforcing Nasdaq's position as a leader in technology solutions for the global economy.

For more information about PureStream on Nasdaq Europe, please visit our website.

* For the purposes of this release Nasdaq Europe refers to, either each individually or all together, markets operated by Nasdaq Copenhagen A/S, Nasdaq Helsinki Ltd and Nasdaq Stockholm AB

About Nasdaq

Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.

Media Contacts

Nasdaq
Helle Mayor
Phone: +45 9132 4030
Helle.mayor@nasdaq.com

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FAQ

When is PureStream expected to launch on Nasdaq Europe (NDAQ)?

PureStream is expected to launch on Nasdaq Europe in Q1 2025, pending regulatory approval.

What is the purpose of PureStream on Nasdaq Europe (NDAQ)?

PureStream on Nasdaq Europe is designed to offer a venue-operated service for trajectory trading, favoring interactions between institutional investors with common execution goals and enabling access to latent algorithmic liquidity.

How does PureStream improve trading for institutional investors on Nasdaq Europe (NDAQ)?

PureStream improves trading by using open-ended liquidity transfer rates, allowing institutional investors to minimize market impact and automate parent order execution by trading a percentage of future market volume at VWAP.

Where is PureStream currently available besides the planned Nasdaq Europe (NDAQ) launch?

PureStream is already available in the US and Canada, with the planned expansion to Nasdaq Europe markets.