Cboe BIDS Australia Service
Cboe BIDS Australia is a conditional message and firm order execution platform that allows counterparties to trade large parcels of Australian equities and ETFs without revealing their trading intentions to the wider market.
A Broker Neutral Australian Block Trading Platform
Cboe BIDS Australia is built on the technology and success of BIDS Trading in the US, Europe and Canada, and is an innovative, anonymous broker neutral service on the Cboe Australia market. Cboe BIDS Australia provides buy-side and sell-side users with a source of deep, secure liquidity, and gives users the opportunity to deepen their institutional relationships.
Cboe BIDS Australia supports trading in over 2,000 equities and ETFs. It allows block trades that are priced at or between the prevailing NBBO, as well as trades with price improvement that are priced at midpoint. Both block and price improvement trades are subject to a minimum $20,000 AUD BIDS order/execution threshold, which provides a basic level of anti-gaming for all users. This protection can be enhanced further through the unique scorecard filtering system and the use of Minimum Executable Quantity (MEQ) on a per order basis. All Cboe BIDS Australia trades are executed as on-market transactions on Cboe Australia.
Access and Seamless Integration
Cboe BIDS Australia is powered by proven software used by the BIDS ATS, Cboe BIDS Europe and Cboe BIDS Canada. The BIDS Trader buy-side front-end interface seamlessly integrates into buy-side order and execution management systems, and Cboe Australia market participants can also provide conditional and firm order liquidity through FIX connections.
How it works
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Liquidity is submitted to Cboe BIDS Australia via two avenues
Buy-side users (using the BIDS Trader software) and sell-side users (using algorithmic suites) submit conditional messages and/or firm orders into Cboe BIDS Australia to identify potential matches. -
BIDS matches and issues invitation
The platform invites marketable conditional messages to “firm up”. For a buy-side user, a Sponsoring Participant must be selected to represent the firm order. -
User firms up and selects broker
If the Sponsoring Participant's pre-trade risk controls are passed, a firm order is generated, submitted to the market, and reported to the Sponsoring Participant via a drop copy. -
Order accepted by Cboe and matched
Matched firm orders result in an on market trade execution on Cboe Australia, which is reported to the Sponsoring Participant via a drop copy. -
Trade Finished
The trade is sent to CHESS for clearing and the selected Sponsoring Participant clears and settles their market side of the transaction. The trade is reported through the CXA PITCH market data feed as an on market trade in real time.
Buy-Side Dealer Tools
Cboe BIDS Australia allows buy-side users to maintain control over their Conditional Message via the BIDS Trader software, which reads from their OMS/EMS. Features of BIDS Trader include:
- Allowing buy-side users to better manage their broker commission payments through Sponsoring Participant selection, thereby strengthening existing relationships
- Filtering and scorecards to assist in protecting conditional message interaction
- Ensuring information about conditional messages is not exposed unless there is a bona fide opportunity to trade
- Ensuring low levels of information leakage on interactions. Counterparties are only aware that it meets the user’s MEQ and is marketable
MIC:
Resources
Visit Document Library for specifications and other resources.
Customer Coverage
Access open to buy-side firms via their OMS/EMS while still maintaining sell-side broker relationships.Access open to sell-side firms that are Cboe Australia market participants.
Connectivity
Sell-side FIX IOI entryBuy-side BIDS/OMS/EMS interface