- This new functionality will allow trading participants to seek contra liquidity in larger size, whilst minimising the price impact of resting orders or seeking price improvement on aggressive orders
- First clients have already confirmed supporting the new offering from day one
SpainAtMid, the new pool of Non-Displayed Liquidity in Spanish Equities, goes live today. SpainAtMid is a cutting-edge order book that enables the execution of trades in Spanish market securities at the midpoint of the bid-ask spread.
SpainAtMid provides an additional source of liquidity for Spanish securities, enabling large volume orders to be traded with minimal impact on the market with the robustness and efficiency of BME's trading system.
SpainAtMid has been designed to operate on the same atomic matching cycle as BME central order book and will be available during the continuous trading phase.
High Liquidity, Better Execution Price and Security are highlighted by the stakeholders as the main benefits of SpainAtMid. From the first day, SpainAtMid will start with several intermediaries, ensuring a robust and active market from the outset.
Trading participants will be able to specify how their market and limit orders interact with SpainAtMid in two ways:
- Direct: Orders can be flagged to be routed to SpainAtMid only, where they will remain until execution at the prevailing mid-point or until they are cancelled.
- Sweep: Orders can be flagged to be routed firstly to SpainAtMid, (for execution at the prevailing mid-point) and then any remaining unexecuted portion will be routed to the Central Limit Order Book where it will remain until it is either fully executed or cancelled.
In both cases, orders may be market or limit orders, and have various conditions such as “Execute or Cancel” or “Minimum Volume”.
Iván Lorenzo, Product Manager, Equity Product at BME, added: “SpainAtMid has been developed to meet the growing demand from our clients for non-displayed execution in Spanish securities. In Switzerland, SwissAtMid had been introduced in 2016 and fundamentally reshaped the trading landscape for Swiss Equities. With our extensive experience in this area in the Swiss market, we believe we are well placed to offer this option in Spain. By emulating this successful setup on the BME Exchange, SIX enables clients to benefit from the ongoing integration and knowledge exchange between its two home markets, Switzerland and Spain. And we are convinced that concentrating more liquidity on our exchanges is beneficial for all trading participants.”
You can find more information about SpainAtMid in this link
