Bloomberg News

NYSE to Shut NYBX Block-Trading Platform Within Exchange

February 07, 2013

The New York Stock Exchange told regulators it plans to shut a block-trading service within the Big Board because of insufficient interest.

NYBX, or New York Block Exchange, will be closed Feb. 28, the company said in a filing to the Securities and Exchange Commission dated Feb. 5. It began operations in January 2009. The exchange facility enables orders submitted to NYBX that aren’t publicly displayed to trade with those at the Big Board.

The exchange operates NYBX through a joint venture with Bids Holdings LP, a consortium of 12 broker-dealers, NYSE Euronext (NYX:US) said in a regulatory filing in February 2012. While both groups co-own NYBX, a NYSE subsidiary owns less than 10 percent of the total limited partnership interest in Bids, NYSE said in a November filing.

“The exchange is ceasing operations of NYBX facility because after years of operations the facility has not garnered enough volume to achieve critical mass and does not have strong support customers,” the exchange said in the filing. Block trades are usually transactions of at least 10,000 shares.

The Bids alternative trading system, or dark pool, is separate from NYBX. It traded 28.6 million shares in December, according to data compiled by Rosenblatt Securities Inc.

To contact the reporter on this story: Nina Mehta in New York at nmehta24@bloomberg.net

To contact the editor responsible for this story: Lynn Thomasson in New York at lthomasson@bloomberg.net.


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