An Iceberg Order is a specific order type/feature that a Stock Exchange offers to large participants, such as institutional

investors, who need to buy and sell large amounts of securities for their portfolios. This feature involves the slicing of a

large share order into smaller orders by algorithmic strategies. The order has to reside at the Exchange and it is no longer

controlled by the executing broker. The Exchange’s iceberg feature only makes visible a small portion of the total order

(“tip of the iceberg”) to the market and “refreshes” the visible order volume automatically, from the reserve/hidden

portion when the visible portion is filled. By only releasing smaller increments of an order to the marketplace as visible

orders, market impact of the underlying/hidden larger order is reduced.