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is a digital trading system for stocks where brokers can expose orders to a crowd of bidders who compete anonymously for the execution. The system is designed to provide best execution and, in particular, opportunities for price improvement -- every trade, automatically.
The Primex Auction gives brokers and Market Makers the means to expose their orders to the broadest possible audience -- an electronic crowd of competing broker/dealers, proprietary traders, institutions, ECNs and even the orders of other customers.
The Primex Auction combines the best elements of today's exchange and dealer-based securities markets. By auctioning securities, the system ensures that orders are fairly priced, based on market forces. Electronic links encourage broad participation, enhancing system liquidity.
Leading members of the securities industry developed The Primex Auction to help them continue to operate their businesses effectively amid market structure changes. These firms realized that today's more challenging trading environment requires new technology that can systematically, even instantaneously, seek out the best prices for their customer orders.
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Market Makers who enter orders for auction need not abandon their current business models and industry relationships. The system gives participants who register as Primex Auction Market Makers special tools to help them retain orders by matching the crowd's interest.
Members of the bidding crowd participate anonymously, bidding at prices within the parameters of the NBBO. Competing interests in the crowd always have the first opportunity to interact with orders entered into the system, which include order flow from Market Makers not previously exposed to the market at large.
Retail investors benefit by having their orders exposed to The Primex Auction's broad audience of bidders, whose competition creates increased opportunities for price improvement and enhanced liquidity. Because the retail customer's broker exposes the order on behalf of their client, the benefits of the existing relationship are preserved.
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