BIDS Trading L.P.

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BIDS Trading
BIDS logo.jpg
Founded 1994
Headquarters New York
Key People Tim Mahoney, CEO; Marybeth Shay, Senior Managing Director
Products Alternative Trading System
Website www.bidstrading.com

BIDS Trading L.P. is a registered broker-dealer and operates the BIDS Alternative Trading System (ATS), which was designed to bring counterparties together to anonymously trade large blocks of shares. The BIDS ATS was developed by a consortium of financial services firms to help block traders find legitimate trading counterparties without prematurely revealing their trading intentions. The BIDS ATS is open to all qualifying broker-dealers and their institutional clients, subject to basic credit and regulatory requirements. It is the largest block-trading ATS by volume in the U.S.[1]

Cboe Global Markets, Inc. announced on October 16, 2020 that it entered into a definitive agreement to acquire BIDS Trading, subject to regulatory review and other customary closing conditions. BIDS Trading is expected to operate as an independently managed trading entity, separate from Cboe's U.S. securities exchanges. [2]

History

BIDS Trading was founded as a subsidiary of BIDS Holdings, L.P., a joint venture of the following financial services firms: Bank of America Merrill Lynch, Bloomberg, Citi, Credit Suisse Group, Deutsche Bank, Goldman Sachs Group, Inc., JPMorgan Chase & Co., Lehman Brothers Holdings, Morgan Stanley, NYSE Euronext, UBS and Virtu Financial.

BIDS Holdings and NYSE Euronext received approval in January 2009 for their planned joint venture, a new block trading venue to allow dark orders on BIDS to interact with displayed and reserve orders on NYSE. The venue will be called The New York Block Exchange (NYBX) and will operate as a facility of NYSE and be accessible via BIDS Trading and open to all NYSE members. Launch date is planned for January 29, 2009.[3]

Share volume on BIDS reached 5.8 billion after its launch in 2007. In July 2008 it achieved an average daily volume of 24.65 million shares. In September 2020 BIDS posted average daily volume of 78.3 million. (Figures were double counted to include both sides of transactions).[4] [5]


Products and Services

BIDS Trading provides an Alternative Trading System to level the playing field in U.S. equity markets. Open access is provided to traders from both the sell-side and buy-side as well as algorithms, hedge funds and program traders.

BIDS Trading also offers BIDS Trader, a web based interface that interacts with various order management systems and sends orders directly to the BIDS ATS.

BIDS Trading does not publish side, size or price information. Users are not aware of the identity of their counterparties and no confidential information about their order is exposed unless there is a bona fide opportunity to trade. Users decide to whom they want to disclose information through BIDS Filters and traders can also identify potential counter-parties based on past trading behavior through BIDS Scorecard. [6]


Key People

References

  1. BIDS Trading. BIDS Trading.
  2. Cboe Global Markets Agrees to Acquire BIDS Trading, the Largest Independent Block Trading ATS in the U.S.. Cboe Global Markets.
  3. NYSE and BIDS block trading venture approved by SEC. The Trade News.
  4. "Rosenblatt agrees access to BIDS ATS". The Trade News.
  5. Home BIDS Trading. BIDS Trading.
  6. BIDS Trading. website.