Nyse Euronext gets SEC approval for MatchPoint trading service
07 January 2008 | 1878 views | 0
Source: Nyse Euronext
Nyse Euronext (NYSE Euronext: NYX) today announced that the U.S. Securities and Exchange Commission has approved the rules for NYSE MatchPoint, a new, portfolio-based, point-in-time electronic facility of the New York Stock Exchange that matches aggregated orders at predetermined sessions throughout regular hours and after hours of the Exchange.
MatchPoint will trade securities listed on all major and regional U.S. stock exchanges. It is expected to begin operation on January 22, 2008.
"NYSE MatchPoint is a major step forward in our broad initiative to provide investors with a choice of how to transact trades at the New York Stock Exchange," said Lawrence Leibowitz, Head of U.S. Products, NYSE Euronext. "It's unique in the exchange environment due to its portfolio-based approach. By offering MatchPoint and our recently-announced joint venture with BIDS, we're providing investors two new, complementary ways to trade block orders."
"NYSE MatchPoint will leverage the neutrality of the New York Stock Exchange with open connectivity and comprehensive regulatory infrastructure to provide a nondisplayed trading environment unlike any other," said James G. Ross, Vice President, NYSE MatchPoint. "Both portfolio-based and single block trade investors will each find immense added value in this new, centralized facility of the Exchange."
The first NYSE MatchPoint matching session will be an after hours match at 4:45 p.m. that uses the official closing price of the primary market. Soon, matching sessions will be established during regular hours of the Exchange. The first will take place at 9:45 a.m., followed by matching sessions at 10 a.m., 11 a.m., 12 noon, 1 p.m., 2 p.m., and 3 p.m. T he price of the intraday match will be the mid-point of the NBBO that is randomly selected during a one-minute pricing period. An investor may enter one portfolio of buy and sell/short orders, a single block order or multiple portfolios of buy and sell /short orders.
Investors that rely on index-based or model-driven trading and investment strategies will find NYSE MatchPoint's portfolio-based capabilities to be a very effective trading tool. In addition, NYSE MatchPoint's non-displayed, point-in-time approach aggregates individual block orders and increases the depth of the liquidity pool and enhances the opportunity of a natural match.
Participation in crossing services has grown significantly in the past couple of years, so the NYSE MatchPoint initiative presents a sizeable opportunity. The new NYSE crossing service is uniquely positioned over existing offerings given the combination of sophisticated portfolio-based trading technology (including cash constraints), competitive pricing, and exchange neutrality. NYSE MatchPoint is expected to attract broad participation from broker/dealers, as well as institutions and hedge funds through broker sponsorship.