On Mar. 12, 2025, Nasdaq Nordic announced the expansion of their auction trading model, targeting less liquid shares, to the Nasdaq Copenhagen First North Growth Market, thereby aligning all of the Nasdaq´s Nordic markets, with the same model.
This aims to enhance market integrity and investor protection, effective in Jul. 2025.
The model, initially launched for Nasdaq First North Growth Markets in Sweden and Finland in 2024, is designed to improve price formation for stocks with low liquidity.
It reduces risk and trading costs for investors while strengthening investor protection.
Liquidity across Nasdaq’s Nordic markets has generally improved over the years, but some companies do continue to face some liquidity challenges, with harmful volatility.
Based on data analyzed in Q3 and Q4 of 2024, eight firms listed on Nasdaq First North Growth Market Copenhagen are affected by changes, but is subject to change as Q1 and Q2 data from 2025 will determine the companies that are affected by the change.
The First North Growth Market Rulebook for Issuers of Shares will be updated during the bi-annual change on Jul. 1, 2025 and additional information on the new auction segment will be set out in the Nasdaq Nordic INET Market Model effective in due time.
Subsequent trading in the new auction segment will then start effective Jul. 17, 2025.
On Mar. 29, Nasdaq Nordic announced model for less liquid shares.
Nasdaq Nordic auction model to support less liquid shares on 1st North Growth Market.
Overview
Announced new auction model targeting illiquid shares on Nasdaq First North Growth Market to further enhance market integrity and investor protection effective Jan 2024.
For over 15 years, served as important growth platform, enabling Nordic/international entrepreneurs to access growth capital to develop and expand their businesses.
The liquidity on Nasdaq’s Nordic markets as a whole has improved over the years.
However, in parallel shares of some companies have had challenges with liquidity.
When spread become too wide relatively small orders can create dramatic price move.
Volatility in these can be harmful to retail investor, affect overall confidence in market.
New model result of months of discussions and market analysis with industry actors.
To change how illiquid shares traded to enhance market integrity, investor protection.
Key Aspects
Companies with +7% average spread for 2 consecutive quarters will have 2 options.
I.e. hire liquidity provider or offer trading via auction model with 5 auctions per day.
Opening auction, 11.00, 13.00, 15.00 and closing auction; initially, new model will be implemented for Nasdaq First North Growth Market Sweden and Finland.
Per technical limitations will be postponed for Nasdaq First North Growth Market DEN.
Rulebook Update
First North Growth Market Rulebook for Issuers of Shares will be updated Jul. 1, 2023.
Additional information set out in Nasdaq Nordic INET Market Model effective Jul. 3.
To ensure stakeholders impacted by change have sufficient time to adapt, new rules will be effective when data from Q3 and Q4 2023 analyzed.
Effectiveness
Trading in the new auction segment will start on Jan. 18, 2024.
Mar. 2025 Expansion Announced
On Mar. 12, 2025, Nasdaq Nordic announced the expansion of their auction trading model, targeting less liquid shares, to the Nasdaq Copenhagen First North Growth Market, thereby aligning all of the Nasdaq´s Nordic markets, with the same model.
This aims to enhance market integrity and investor protection, effective in Jul. 2025.
The model, initially launched for Nasdaq First North Growth Markets in Sweden and Finland in 2024, is designed to improve price formation for stocks with low liquidity.
It reduces risk and trading costs for investors while strengthening investor protection.
Liquidity across Nasdaq’s Nordic markets has generally improved over the years, but some companies do continue to face some liquidity challenges, with harmful volatility.
Based on data analyzed in Q3 and Q4 of 2024, eight firms listed on Nasdaq First North Growth Market Copenhagen are affected by changes, but is subject to change as Q1 and Q2 data from 2025 will determine the companies that are affected by the change.
The First North Growth Market Rulebook for Issuers of Shares will be updated during the bi-annual change on Jul. 1, 2025 and additional information on the new auction segment will be set out in the Nasdaq Nordic INET Market Model effective in due time.
Subsequent trading in the new auction segment will then start effective Jul. 17, 2025.
