NEW YORK, July 27, 2016 /PRNewswire/ -- AX Trading LLC, the first Electronic Trading Network, today announced a new order type AX MB, responding to the critical need for institutions to secure mega block trading. The first order of its kind, AX MBT will be conducted via a standard AX auction. A 1 million share minimum will be required to launch a megablock cross and responding participants in the auction must place a minimum 500,000 shares.
The buyside has long identified trading in size as a critical need, even as order size continues to shrink, and regardless of the type of shares (small, mid or large cap) or trade frequency (thinly vs. heavily traded). The frustration of institutions continues, even as HFTs and other mechanisms erode their market standing and affect their ability to secure performance for their end clients.
AX is a creative solution to this problem, allowing an institution to participate for a defined time of its choosing in a trade. Via its auction model, institutions control the strategy, the stock, the timing, and find an acceptable price with other naturals.
Said Mike Lally, Managing Director, AX Trading: "The need to trade in size without market impact has not diminished; only the opportunity and the mechanisms to do so are fewer. AX MBT is a creative electronic solution to the block problem, even as institutional need to find liquidity is constrained. Institutions need a break and AX MB gives them one."
Said George O'Krepkie, CEO of AX: "Creative approaches have defined our marketplace regardless of changes in market structure, technology, regulation or the competitive environment. For the first time in a long time, institutions are now the focus of that creativity, and we will restore their footprint as they are the ultimate investors and legitimate drivers of markets."
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About AX Trading LLC
The AX Trading Network is the market's first "Electronic Trading Network" (ETN), allowing institutional traders to proactively connect and trade with other counterparties in a secure environment. In today's trading world, where more and more liquidity is being withheld from the market, AX provides a way for institutional traders need a way to proactively reach out to targeted counterparties but in a way that protects their trading intentions and their identity. AX Trading, LLC is a SEC-registered broker-dealer and Alternative Trading System (ATS) and is a member of FINRA and SIPC. AX can be reached at 917-262-0388 and at www.axtrading.com.
SOURCE AX Trading LLC