The Nasdaq stock market has announced the addition of a new product to the Nasdaq DataStore, an online collection of innovative data tools for institutional and individual investors. Nasdaq’s pre-trade market impact cost estimator is claimed to improve pre-trade analysis and manage transaction costs.
Nasdaq’s pre-trade market impact cost estimator (Nasdaq Pre) is the latest addition to the Nasdaq DataStore, whose debut in July 2007 marked the first time a US stock exchange offered direct purchase of this breadth of data directly via the web.
Nasdaq Pre facilitates pre-trade analysis by providing a reliable average cost estimate that is cents away from the inside. The estimate helps determine which order types and sizes will minimize the market impact cost of a transaction – thus helping manage transaction costs. The estimate is associated with a particular order size and time of day.
Adena Friedman, executive vice president, Nasdaq, said: As our newest data product, Nasdaq Pre offers market participants more certainty in trading performance by providing unsurpassed transparency into Nasdaq’s order activity.