Nyse Euronext and Bids Holdings are set to launch a block trading execution platform later this week, after receiving the greenlight from the Securities and Exchange Commission.
The New York Block Exchange (NYBX) is a 50:50 joint venture between Nyse Euronext and Bids (Block Interest Discovery Service), an alternative platform for equity block stock trading established by a consortium of Wall Street banks in 2006.
The partners say their platform will improve execution quality and access to liquidity in block trading, addressing current inefficiencies such as market fragmentation.
Following the SEC's approval of a joint filing, NYBX will launch on 29 January, operating as a facility of Nyse, open to all the exchange's members, but will also be accessible through Bids Trading platform.
Larry Leibowitz, group EVP, head of US execution and global technology, Nyse Euronext, says: "By aligning ourselves with Bids Trading and its investors, we are further demonstrating our ongoing commitment to re-discovering and re-aggregating substantial block liquidity to better serve our customers."
Tim Mahoney, CEO, Bids Trading, adds: "By partnering with Nyse Euronext, NYBX orders will interact with additional market participants to provide unparalleled price discovery and access to liquidity in today's fragmented block trading environment."