NEW YORK, NY – January 29, 2009 – NYSE Euronext (NYX) and BIDS Holdings, L.P., (BIDS Holdings) today announced the launch of their joint venture, the New York Block Exchange (NYBXSM ), an innovative 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 NYBX, 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.
“Given the speed and complexity of today’s dynamic marketplace, there is a need to resolve the problems inherent in executing block trades in an increasingly fragmented trading environment,” said Larry Leibowitz, Group Executive Vice President and Head of U.S. Execution and Global Technology. “As the first platform to unite dark and light sources of liquidity, NYBX will significantly reduce market fragmentation for large orders; electronically replicating traditional block trading. This represents a major advancement in block trading.”
“Today’s launch of 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 NYBX as the most efficient trading solution. By combining the anonymity, speed and flexibility of the BIDS ATS with the world’s leading exchange, 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 NYBX. In addition, NYSE Euronext made an investment in BIDS Holdings in October 2006.
NYBX is open to all New York Stock Exchange members and to BIDS Trading subscribers via sponsored access. 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.
To effectively preserve anonymity and manage information leakage, original technology has been created specifically for the NYBX platform. NYBX will continuously search itself, as well as the NYSE order book, trading with displayed orders, reserve orders and hidden interest on the New York Stock Exchange, while keeping the order anonymous.
Please visit http://www.nybx.com for more information and an NYBX webcast.
BIDS Holdings, L.P., Caroline Bujak, +1.212.618-2097
Intermarket Communications, Stephanie DiIorio, +1.212.754-5181
About BIDS Holdings, L.P.
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).
©2009 New York Block Exchange, LLC. NYBXSM is a service mark of NYSE Group, Inc. and is used by the New York Block Exchange, LLC under license. 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.