SWEDEN: NASDAQ Introduces an Auction Model to Support Less Liquid Shares on Nasdaq First North Growth Market

Thursday March 30 2023

On 29^th March 2023, National Association of Securities Dealers Automated Quotations (Nasdaq) announced a new auction model targeting illiquid shares on Nasdaq First North Growth Market to further enhance market integrity and investor protection effective January 2024. 

The new model is the result of months of discussions and market analysis together with industry participants and will change how illiquid shares are traded to enhance market integrity and investor protection. Companies with more than seven percent average spread for two consecutive quarters will be presented with two options. The first option is to hire a liquidity provider and the second option is to offer trading through an auction model with five auctions per day: opening auction, 11.00, 13.00, 15.00 and closing auction. Initially, it will be implemented for Nasdaq First North Growth Market Sweden and Finland. Due to technical limitations the auction model will be postponed for Nasdaq First North Growth Market Denmark. 

First North Growth Market Rulebook for Issuers of Shares will be updated during the annual change on July 1^st, 2023 and additional information on the new auction segment will be set out in the Nasdaq Nordic INET Market Model effective July 3^rd, 2023. To ensure that stakeholders which are impacted by the change have sufficient time to adapt, the new rules will be effective when data from Q3 and Q4 has been analyzed and trading in the new auction segment will start on January 18^th, 2024. 

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