NEW YORK, NY – January 29, 2009 – NYSE Euronext (NYSE) and BIDS Holdings, L.P., (BIDS Holdings) today announced the launch of their joint venture, the New York Block Exchange (NYBX), a revolutionary new platform designed to maximize access to liquidity and improve execution quality in the U.S. equity block trading market. Institutional investors and other market participants can now execute block trades on the NYBX platform - the first venue of its kind to allow non-displayed liquidity to anonymously access both the displayed and reserve liquidity of the NYSE order book, creating an innovative platform to re-aggregate blocks of stock. The NYBX operates as a facility of the NYSE, subject to regulatory oversight by NYSE Regulation.
"Given the complexity of today's dynamic marketplace, there is a need to resolve the problems inherent in executing block trades," said Larry Leibowitz, Group Executive Vice President and Head of U.S. Execution and Global Technology. "By uniting dark and light liquidity, the NYBX will reduce market fragmentation for large orders; electronically replicating traditional block trading, which represents another step in the block trading revolution."
"Today's launch of the NYBX marks a historic shift in the way market participants can execute block trades, representing a leap forward in the institutional trading environment," said Tim Mahoney, Chief Executive Officer of BIDS Trading. "Previously, there had been a gap in electronically servicing block trades and we see the NYBX as a much more efficient trading solution. By combining the anonymity, speed and flexibility of the BIDS ATS with the world's leading exchange, the NYBX aims to improve block executions, provide unparalleled price discovery, and reduce fragmentation; giving traders a one-stop block trading service."
BIDS Holdings and the NYSE Euronext each have a 50% ownership stake in the NYBX. In addition, the NYSE Euronext made an undisclosed investment in BIDS Holdings in October 2006.
The NYBX is open to all NYSE members and BIDS Trading clients via sponsored access through a registered broker-dealer. The BIDS ATS, which is open to all broker-dealers, investment managers, hedge funds and algorithms, enables access to the NYBX liquidity by allowing clients to opt-in on an order-by-order basis. Traders can set different prices and minimum trade sizes in each venue.
To effectively preserve anonymity and manage information leakage, original technology has been created specifically for the NYBX. NYBX will continuously search itself, as well as the NYSE order book, trading with displayed orders, reserve orders and hidden interest on the NYSE, while keeping the order completely anonymous, right through clearing.
Caroline Bujak, BIDS Trading, L.P.
Email: caroline.bujak@bidstrading.com
Tel: +1.212.618.2097
Stephanie DiIorio, Intermarket Communications
Email: sdiiorio@intermarket.com
Tel: +1.212.754.5181
Eric Ryan, NYSE Euronext
Email: eryan@nyx.com
Tel: +1.212.656.2411
NYSE Euronext (NYX) is the world’s leading, most liquid and diverse exchange group. It offers a broad and growing array of financial products and services in cash equities, futures, options, exchange-traded products, bonds, market data, and commercial technology solutions, all designed to meet the evolving needs of issuers, investors and financial institutions. Spanning multiple asset classes and six countries, NYSE Euronext’s exchanges include the New York Stock Exchange, Liffe, the leading European derivatives exchange by value of trading, Euronext and NYSE Arca. With more than 6,500 listed issues, more than any other exchange group, trading on NYSE Euronext’s equity markets represents more than one-third of the world's cash equities volume. NYSE Euronext is part of the S&P 500 index and the only exchange operator in the S&P 100 index. For more information, please visit www.nyx.com.
BIDS Holdings, L.P. is the parent company of BIDS Trading, L.P. , a registered broker-dealer and the operator of the BIDS Alternative Trading System (ATS), which was designed to bring counterparties together to anonymously trade large blocks of shares. Developed by a consortium of leading financial services firms, the BIDS ATS resolves the classic paradox of the block trader – the need to find legitimate trading counterparties without prematurely revealing trading intentions. The BIDS ATS is open to all qualifying broker-dealers and their institutional clients, subject to credit and regulatory requirements. For more information, visit www.bidstrading.com
BIDS Trading is a joint venture of: Bank of America Merrill Lynch (NYSE: BAC), Citi (NYSE: C), Credit Suisse Group (NYSE: CS), Deutsche Bank (NYSE: DB), The Goldman Sachs Group, Inc. (NYSE: GS), JPMorgan Chase & Co. (NYSE: JPM), Knight Capital Group, Inc. (NASDAQ: NITE), Lehman Brothers (NYSE: LEH), Morgan Stanley (NYSE: MS), NYSE Euronext (NYX), and UBS (NYSE: UBS).
BIDS Trading, L.P. ("BIDS Trading") is a member of FINRA and SIPC. BIDS Trading and the BIDS Trading mark are protected in the United States and in countries throughout the world.
©2009 New York Block Exchange, LLC. NYBXSM and New York Block ExchangeSM are service marks of NYSE Group, Inc. and are used by New York Block Exchange, LLC under license. BIDS Trading, L.P. ("BIDS Trading") is a member of FINRA, NYSE, and SIPC. BIDS Trading and the BIDS Trading mark are protected in the United States and countries throughout the world. NYSE and NYSE Euronext, and their associated marks, are also protected in the United States and countries throughout the world.
