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.
Orders on LuxSE can either be:
In the latter case, to increase the chances of the transaction taking place, we inform our recognised liquidity providers through the NEOSS system 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.
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.
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 an applied price range of 100 basis points are sent to liquidity providers.
A guaranteed service to monitor non-executed orders
Over 90% of executed orders within the 100 basis points range
Competition at liquidity provider level
Improved trade prices
The buy side no longer systematically trades at a sell side price