Nasdaq is set to launch volume-based trajectory trading solution PureStream in Europe in Q1 2025, pending regulatory approval.
Sean Hoover
The offering – already available in the US and Canada – will give clients access to EU shares on Nasdaq Europe.
Speaking to the TRADE earlier this year, Sean Hoover, PureStream chief operating officer, said: “Subscribers and clients have both made it clear that the unique value of streaming in the US is something that they would welcome in Europe.
“We are excited about our partnership with Nasdaq, who has publicly announced its intent to roll out our streaming order types in Europe later this year, subject to the necessary approvals.”
Specifically, PureStream enables access to latent algorithmic liquidity using liquidity transfer rates – all in line with the volume goal of each strategy.
Currently, Nasdaq is the only venue in Europe offering this. There has been a lot of discussion surrounding the race for first mover advantage in Europe’s emerging crossing network landscape in recent times. Despite low European volumes, these venues offer increased choice and competition for institutional investors looking to achieve more effective outcomes.
Several European exchanges are underway with plans to bring out offerings of this ilk throughout the course of the year, The TRADE understands, while some other US alternative trading systems (ATS) – as well as PureStream – are also preparing to make the crossing over the Atlantic.
Within Europe there have been some significant moves rumoured. Talk of Aquis launching a new TWAP and VWAP trajectory crossing capability this year has been widespread, while Cboe has confirmed plans for the launch of its new volume weighted average price (VWAP) crossing service for equities at the end of this year.
Read more: Cboe BIDS VWAP-X: Introducing venue-based trajectory crossing to Europe
The tool uses open-ended liquidity transfer rates to substantially improve the process of price and liquidity discovery – minimising institutional investors’ market impact.
PureStream’s solution is aimed at helping both the buy- and sell-side when executing long-term trajectory orders – pairing trading interests in open-ended streaming batches, meaning traders do not need to rely only on sourcing liquidity on a single point-in-time basis.
Read more: PureStream: The disruptor venue determined to make waves in the institutional liquidity landscape
Nikolaj Kosakewitsch, senior vice president and head of European equities and derivatives at Nasdaq, said: “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.”