24 March 2018

J P Morgan acquires stake in Internet-based Arizona Stock Exchange

28 June 2000  |  2825 views  |  0 J P Morgan acquires stake in Internet-based Arizona Stock Exchange

J P Morgan is to acquire a minority interest in the Arizona Stock Exchange (www.azx.com), an electronic call market for stocks. The US investment bank has also joined a programme to demonstrate AZX’s preopening call auction system.

The voluntary call auction programme, designed to efficiently achieve price discovery for Nasdaq stocks, is currently being conducted with 16 Nasdaq stocks. As part of the AZX call auction, firms will enter bids and offers for these stocks between 9:00 amand 9:29 am EDT, just before the Nasdaq’s daily 9:30 am opening. At 9:29 am, a clearing price will be determined that optimally executes the most volume from both the bid and offer sides of the market.

Bob Gasser, Head of J P Morgan’s US equity trading business, comments: "AZX’s preopening call auction will enable us to level the playing field for investors by offering a more transparent process for discovering opening price. Achieving price discovery with the broadest market constituency possible is an essential element to providing clients with best execution. In highly volatile markets, it is our belief that this mechanism has the potential to reduce the market impact of both institutional and retail order flow by virtue of its full disclosure of the depth of the bid and offer side of the market for any given security."

Founded in 1992, the Arizona Stock Exchange is an electronic, Internet-based system for conducting single price call auctions in equity securities. AZX’s auctions are distinguished by trading at only designated times, as opposed to the continuous trading of most other markets, and are designed to balance supply and demand at those times in a fair and open process. The principle is considered ideally suited to opening and closing markets, and for stabilising volatile markets.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

SEC urged to bring in central order book

SEC urged to bring in central order book

23 June 2000  |  3107 views  |  0 comments
Island forms ECN joint venture in South Korea with Uclick

Island forms ECN joint venture in South Korea with Uclick

22 June 2000  |  3486 views  |  0 comments

Related company news


Related company information

JPMorgan Chase

Related blogs

Create a blog about this story (membership required)
visit www.ebaday.comwww.currencycloud.com

Top topics

Most viewed Most shared
hands typing furiouslyBitcoin at 50,000 USD?
14858 views 0 | 8 tweets | 5 linkedin
BBVA tests 'invisible payments' technology at inhouse cafeBBVA tests 'invisible payments' technology...
12344 views comments | 16 tweets | 35 linkedin
RBS hatches plan to create digital challenger bankRBS hatches plan to create digital challen...
11978 views comments | 12 tweets | 23 linkedin
Barclays partners seven watch brands for contactless timepiecesBarclays partners seven watch brands for c...
10791 views comments | 14 tweets | 32 linkedin
Germany's N26 readies for US launch with EUR110 million capital injection led by Allianz and TenCentGermany's N26 readies for US launch with E...
8860 views comments | 15 tweets | 11 linkedin

Featured job

Basic c.£90K OTE c.£180K plus full benefits pac...
London based

Find your next job