NYSE Euronext and BIDS Trading have decided to shut down their joint venture (JV) New York Block Exchange (NYBX) at the end of February this year, citing “lack of customer interest”.
Unveiled in January 2009, NYBX was set up to enable members of the BIDS Alternative Trading System (ATS) dark pool to carry out block trades by secretly accessing displayed, reserve and undisplayed liquidity on the exchange.
In order to deal with market slowdown as well as decreased trading volumes, NYSE Euronext is trying to reduce operational costs, as part of a strategy to slash $250m in costs by the end of 2014.
It is believed that it will be purchased by an futures-market operator IntercontinentalExchange, for nearly $8.6bn.
NYSE chief operating officer Lawrence Leibowitz said the exchange will continue to work with BIDS.
NYSE Euronext operates exchanges in Europe and the US, including the New York Stock Exchange, NYSE Euronext, NYSE MKT, NYSE Alternext and NYSE Arca, and trades equities, futures, options, fixed-income and exchange-traded products.