BME will incorporate a new functionality into its Smart platform called SpainAtMid starting in December, an order book without pre-transparency that will allow trading in equity securities at the midpoint of the bid-ask spread of BME’s main market. This functionality will be available during the continuous trading phase.
SpainAtMid will have a specific MIC code assigned to facilitate the identification of trades executed in this functionality and will allow for simultaneous trading with BME’s main order book. Orders executed under this new functionality will have zero latency. In other words, the midpoint of the bid-ask spread will be calculated with the information available at all times in BME, guaranteeing the best execution price for all clients who wish to participate.
Participants will be able to identify market and limit orders in two possible ways to benefit from the advantages that this new functionality offers:
Direct: Orders can be marked to be directed only to SpainAtMid, where they will remain until executed at the midpoint of the bid-ask spread or until cancelled.
Sweep: Orders can be marked to be sent first to SpainAtMid for execution at the midpoint of the bid-ask spread, and then any unexecuted portion will be sent to the central order book, where it will remain until fully executed or cancelled.
According to the estimated rollout schedule, this new functionality will be implemented in the test environment on September 30, 2024, and will go live on December 9, 2024. This new functionality will allow market members to access greater liquidity, while also minimizing the impact on the price of passive orders and seeking price improvement for aggressive orders.
via: MiMub in Spanish
