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Cboe Global Markets

Cboe EDGX Non-Displayed Swap

Resting orders with the non-displayed swap (NDS) instruction can execute in circumstances where they would otherwise lock with Post Only contra-side orders. NDS unlocks resting orders, enabling them to be liquidity removers in certain circumstances. With NDS, execution opportunities are increased by providing a means for non-displayed resting orders to execute against Post Only contra-side orders that would otherwise be bypassed.

Order Types that can use NDS

  • Hidden Limit Orders
  • Mid Peg Orders
  • Hidden Primary Peg Orders
  • Market Peg Orders

Behavior

NDS orders, if executed upon arrival, will always be removers of liquidity. Resting orders with the NDS instruction will become liquidity removers when incoming Post Only orders would otherwise lock with them.

  • Non-displayed orders without NDS can cede priority to resting NDS orders. Specifically, a later-arriving NDS order will execute instead of the earlier-arriving order lacking the NDS instruction, whenever the contra-side is a Post Only limit order at the same price. A displayed order will never cede priority to an order with an NDS instruction.
  • Once NDS orders are resting on the book, executions can occur as follows:
    • If a liquidity swap is required in order to execute, NDS orders will be subject to the liquidity removal fee.
    • If NDS orders can trade with contra-side orders eligible to remove liquidity, resting NDS orders then execute as liquidity adders and do not liquidity swap.

Contact

Please contact the Cboe U.S. Equities Trade Desk ([email protected], 913.815.7001) or your Director of Sales with any questions. We appreciate your continued support of Cboe and look forward to earning more of your business.

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