Nasdaq Launches PureStream in Europe – A new tool for trajectory trading
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.
Nasdaq (NDAQ) ha annunciato il lancio previsto di PureStream, una soluzione di trading per traiettorie basata sul volume per le azioni dell'UE su Nasdaq Europe, attesa nel Q1 2025 in attesa di approvazione regolamentare. PureStream, già disponibile negli Stati Uniti e in Canada, offre un servizio gestito dall'venue per il trading di traiettorie con indicazioni di interesse condizionali, favorendo le interazioni tra investitori istituzionali con obiettivi comuni di esecuzione.
La soluzione mira a migliorare la scoperta dei prezzi e della liquidità utilizzando tassi di trasferimento di liquidità aperti, consentendo agli investitori istituzionali di minimizzare l'impatto di mercato e automatizzare l'esecuzione degli ordini principali, commerciando una percentuale del volume di mercato futuro a VWAP. PureStream su Nasdaq Europe offrirà una maggiore scelta di meccanismi di esecuzione degli scambi e aiuterà gli investitori istituzionali a orientarsi nel panorama commerciale europeo.
Nasdaq (NDAQ) ha anunciado el lanzamiento previsto de PureStream, una solución de trading por trayectorias basada en el volumen para acciones de la UE en Nasdaq Europe, que se espera en el Q1 de 2025, sujeto a la aprobación regulatoria. PureStream, ya disponible en EE. UU. y Canadá, ofrece un servicio operado por el venue para el trading de trayectorias con indicaciones de interés condicionales, favoreciendo las interacciones entre inversores institucionales con objetivos de ejecución comunes.
La solución tiene como objetivo mejorar el descubrimiento de precios y liquidez utilizando tasas de transferencia de liquidez abiertas, permitiendo a los inversores institucionales minimizar el impacto en el mercado y automatizar la ejecución de órdenes principales negociando un porcentaje del volumen de mercado futuro al VWAP. PureStream en Nasdaq Europe proporcionará mayor elección de mecanismos de ejecución de operaciones y ayudará a los inversores institucionales a navegar el panorama comercial europeo.
Nasdaq (NDAQ)은 규제 승인을 조건으로 하여 2025년 1분기에 Nasdaq Europe에서 EU 주식을 위한 볼륨 기반 궤적 거래 솔루션인 PureStream의 출시를 예고했습니다. 이미 미국과 캐나다에서 사용 가능한 PureStream은 궤적 거래를 위한 거래소 운영 서비스를 제공하며, 일반적인 실행 목표를 가진 기관 투자자 간의 상호 작용을 촉진하는 조건부 관심 표시 기능이 있습니다.
이 솔루션은 가격 및 유동성 발견을 개선하는 것을 목표로 하며, 개방형 유동성 전송 비율을 활용해 기관 투자자들이 시장 영향을 최소화하고, 미래 시장 거래량의 일부를 VWAP로 거래하여 본 주문 실행을 자동화할 수 있도록 합니다. Nasdaq Europe의 PureStream은 거래 실행 메커니즘의 선택권을 확대하고 기관 투자자들이 유럽 거래 환경을 탐색하는 데 도움을 줄 것입니다.
Nasdaq (NDAQ) a annoncé le lancement prévu de PureStream, une solution de trading par trajectoire basée sur le volume pour les actions de l'UE sur Nasdaq Europe, prévue pour le premier trimestre de 2025, sous réserve d'approbation réglementaire. PureStream, déjà disponible aux États-Unis et au Canada, offre un service opérationnel sur site pour le trading par trajectoire avec des indications d'intérêt conditionnelles, favorisant les interactions entre les investisseurs institutionnels ayant des objectifs d'exécution communs.
La solution vise à améliorer la découverte des prix et de la liquidité en utilisant des taux de transfert de liquidité ouverts, permettant aux investisseurs institutionnels de minimiser l'impact sur le marché et d'automatiser l'exécution des commandes principales en négociant un pourcentage du volume de marché futur au VWAP. PureStream sur Nasdaq Europe fournira un plus grand choix de mécanismes d'exécution des transactions et aidera les investisseurs institutionnels à naviguer dans le paysage commercial européen.
Nasdaq (NDAQ) hat die geplante Einführung von PureStream angekündigt, einer volumenbasierten Handelslösung für Trajektorien für EU-Aktien an der Nasdaq Europe, die im ersten Quartal 2025 voraussichtlich nach Genehmigung durch die Regulierungsbehörden verfügbar sein wird. PureStream, das bereits in den USA und Kanada verfügbar ist, bietet einen veranstaltungsgeführten Service für den Trajektorienhandel mit bedingten Interessensbekundungen und fördert die Interaktion zwischen institutionellen Investoren mit gemeinsamen Ausführungszielen.
Die Lösung zielt darauf ab, die Preis- und Liquiditätsentdeckung zu verbessern, indem offene Liquiditätsübertragungsraten verwendet werden, die es institutionellen Investoren ermöglichen, Marktbeeinträchtigungen zu minimieren und die Ausführung von Hauptaufträgen zu automatisieren, indem ein Prozentsatz des zukünftigen Marktvolumens zum VWAP gehandelt wird. PureStream an der Nasdaq Europe wird eine größere Auswahl an Handelsausführungsmechanismen bieten und institutionellen Investoren helfen, sich im europäischen Handelsumfeld zurechtzufinden.
- 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
- None.
Insights
The launch of PureStream on Nasdaq Europe represents a significant advancement in trading technology, potentially impacting institutional investors and market dynamics. This volume-based trajectory trading solution addresses key challenges in price discovery and liquidity management, which could enhance execution quality for large orders.
Key benefits include:
- Minimized market impact through open-ended liquidity transfer rates
- Automated parent order execution tied to market VWAP
- Improved matching of institutional investors with similar execution goals
- Access to latent algorithmic liquidity
While the immediate revenue impact for Nasdaq may be , this strategic move strengthens its competitive position in European markets. Long-term, it could attract more institutional order flow and potentially increase market share. However, the success will depend on adoption rates and regulatory approval, which introduces some uncertainty.
Investors should monitor the Q1 2025 launch and subsequent uptake by major institutional players. This innovation aligns with the broader trend of market structure evolution and could influence trading strategies across the industry.
Nasdaq's introduction of PureStream in Europe signifies a notable shift in trading mechanisms, potentially reshaping market microstructure. This move addresses the growing demand for more sophisticated execution tools among institutional investors, particularly for large orders that are challenging to execute efficiently in traditional lit markets.
Key implications:
- Increased fragmentation of liquidity pools in European markets
- Potential reduction in market impact costs for large trades
- Enhanced competition among trading venues for institutional order flow
- Possible regulatory scrutiny regarding market transparency
While PureStream may improve execution quality for some participants, it could also contribute to the ongoing debate about market fragmentation and its effects on overall market quality. Regulators may closely examine how this new mechanism aligns with existing MiFID II requirements, particularly concerning pre-trade transparency.
For Nasdaq, this launch reinforces its position as an innovator in market structure, potentially attracting more institutional business. However, the long-term impact on trading volumes and market share will depend on how well PureStream integrates with existing trading workflows and its ability to deliver measurable execution improvements.
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)?
What is the purpose of PureStream on Nasdaq Europe (NDAQ)?
How does PureStream improve trading for institutional investors on Nasdaq Europe (NDAQ)?
Where is PureStream currently available besides the planned Nasdaq Europe (NDAQ) launch?
