Institutions and other market participants can now execute block trades on the New York Block Exchange (NYBX), a joint venture between NYSE Euronext and BIDS Holdings.
The platform is designed to maximize access to liquidity and improve execution quality of the U.S. equity block trading market by allowing non-displayed liquidity to anonymously access displayed and reserve liquidity of the NYSE order book to re-aggregate blocks of stock. NYBX continuously searches itself and the New York Stock Exchange (NYSE) order book, trading with displayed orders, reserve orders and hidden interest on the NYSE, while keeping the order anonymous.
“NYBX will significantly reduce market fragmentation for large orders; electronically replicating traditional block trading. This represents a major advancement in block trading,” said Larry Leibowitz, NYBX’s group EVP and head of U.S. execution and global technology.
NYBX is open to NYSE members and BIDS Trading subscribers. The BIDS Alternative Trading System, which is accessible to all broker-dealers, investment managers, hedge funds and algorithms, enables access to NYBX liquidity by allowing subscribers to opt-in on an order-by-order basis. Traders can set different prices and minimum trade sizes in each venue.