The Five Stages of a CODA Micro Auction


CODA Micro is a user-initiated sub-second auction that transacts against resting and responding liquidity at or within the National Best Bid or Offer (NBBO).
  1. Matching Protocol Selection
    Users pre-specify the maximum length of their auction pauses (1-20 milliseconds) and whether their orders will be matched on the basis of price/time priority (best-price first) or time priority (first-responder first)
  2. Auction Initiation
    Initiators send marketable orders which generate symbol-only alerts to CODA Micro subscribers.
  3. Order-Entry Period
    Subscribers respond, within 1-20 milliseconds, with non-displayed bids.
  4. Price Determination
    CODA applies the user-specified matching protocol to generate trades at or within the National Best Bid or Offer (NBBO).
  5. Post-Auction Process
    Trades are reported to the Trade Reporting Facility (TRF). Any unmatched portion of the initiator order can be routed automatically to other venues using CODA FLARE, posted to CODA’s Managed Order Facility for participation in future auctions, or cancelled—all depending on the initiator’s specifications.


Key Features and Benefits of CODA Micro

  • Trader Control
    • Traders seeking liquidity set the terms of each auction to suit their priorities in terms of price and execution-certainty. Liquidity providers minimize their open-order risk by responding to requests only as and when desired.
  • Liquidity Competition and Aggregation
    • By pausing the market—for no more than 1 milliseconds, if traders so choose—traders can achieve better prices, through auction competition, as well as larger trade sizes and higher fill rates through the aggregation of contra-side liquidity.
  • Easy to Use
    • CODA Micro integrates seamlessly into third-party algorithmic suites and electronic-trading platforms. There are no unique or complex order types.
  • NMS Integration
    • Any unexecuted portion of an order can be routed swiftly and automatically to other markets or placed in CODA’s non-displayed Managed Order Facility for participation in future auctions.


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