BIDS Trading, the independent alternative trading system launched by a dozen Wall Street firms in April, is rapidly gaining market share, which should force this competitive industry segment to lower execution fees, said Sang Lee, managing partner at Aite Group, a financial industry consultancy, in a research report released today.
BIDS Trading today announced crossing 1 billion shares on its platform since its April launch.
Competition is ratcheting up in the fast-growing crossing network segment, with more than three dozen participants fighting for a share of off-exchange trading volume, Mr. Lee said.
“With the launch of BIDS, price compression appears inevitable,” he wrote in the report. “BIDS has upped the ante in the block trading market.”
