The Primex Auction System® is a trading system that replicates a competitive trading crowd in an extended digital environment.
The system is available for Nasdaq-listed securities and exchange listed securities traded. Exposes Orders to an Electronic Crowd Market orders and immediately executable limit (priced) orders may be entered into the Primex Auction System for exposure to a broad-based, electronically linked crowd. Participants in the crowd compete anonymously for orders using bidding tools unique to Primex that speed the auction process. Orders being exposed will execute instantly in many cases. All executions in the system will be at prices at least as favorable as the prevailing National Best Bid and Offer (NBBO).
Provides Opportunities for Price
Improvement The system's electronic auction process elicits latent trading interest from market participants that is not often displayed in public quotes. This interest in the system, which is always at prices equal to or better than what may be available in the NBBO, provides orders with increased opportunities to receive price improvement and enhanced liquidity.
Helps Facilitate Best Execution Because the Primex Auction System provides an efficient means for seeking improved executions, broker/dealers may use the system to help facilitate best execution for their customer orders. Market makers need not abandon existing business models and relationships for their customers to benefit from the auction process. The system provides market makers with tools so that they can enter customer orders into the system for exposure and still participate in the execution of those orders. Capital commitments that market makers provide to their customer orders further enhance the liquidity available in the system.
Increases Market Participant Interaction The Primex Auction System is designed to increase order exposure and interaction between market participants. Many of the orders being exposed in the system will originate from broker/dealers who previously did not have an efficient, market-based method to validate customer executions. These newly exposed orders provide additional trading opportunities for the system's crowd participants, whose own interests contribute liquidity beyond what's displayed in public quotes.
Keeps Trading Interests Anonymous The Primex Auction System limits the disclosure of participants' trading interest. Orders and responses entered into the system reveal their brokerage information only in the event of an execution. Unexecuted response interest is never disclosed to other participants.
