Non-Executed Orders Screening System (NEOSS)
The Non-Executed Orders Screening System or NEOSS is a system that increases market liquidity of non-executed orders. The NEOSS mechanism applies to all types of securities.
Summary
Advantages of the NEOSS service
- Buy Side liquidity discovery service on a Central Limit Order Book
- Multiple liquidity providers firm prices
- Improved trade prices
- Guaranteed surveillance and constant monitoring of non-executed orders
How does NEOSS work?
Orders on the Luxembourg Stock Exchange (LuxSE) can either be:
- Automatically executed if the order book’s situation permits it
- Placed in the order book, awaiting execution as there is no immediate transaction possible due to the order book’s situation
In the latter case, to increase the chances of the transaction taking place, we inform our recognised liquidity providers through NEOSS about a non-executed order. Liquidity providers may either adjust their prices or insert an opposite order to generate a trade. In effect, the system enables non-executed orders to be monitored in real-time.
Who can use NEOSS?
To access the NEOSS service, a liquidity provider must constantly quote a minimum of 500 securities. Two scenarios are possible:
- If there is a recognised market maker for a security, only this liquidity provider will be asked for a quote
- If there is no specific market maker for a security, all recognised liquidity providers will be asked for a quote
Type of orders sent to liquidity providers
Before asking for a quote, we first analyse the price of the order. Based on the available market prices, we calculate a benchmark curve. Only orders within a determined price range are sent to liquidity providers.