Cboe combines MATCHNow and BIDS for new block trading platform in Canada

Cboe LIS powered BIDS in Canada will combine MATCHNow and BIDS to create a market center for block-sized liquidity for buy-side and sell-side participants.

Exchange operator Cboe Global Markets has confirmed plans to combine MATCHNow and BIDS Trading and launch a block trading platform in Canada after recently acquiring both firms.

Known as Cboe LIS powered by BIDS in Canada, the platform is expected to launch in February next year, subject to a regulatory review, providing block-sized liquidity for the buy- and sell-side in the region.

The platform will combine the conditionals order book from Canadian dark pool and alternative trading system (ATS) MATCHNow, with the BIDS trading model and proprietary technology for low market impact, block-sized orders. 

Cboe said that the combination of MATCHNow’s sell-side network and BIDS’ buy-side participants will deliver a greater source of block-sized liquidity to the Canadian marketplace and increase matching opportunities for all participants through Cboe LIS.

MATCHNow’s conditionals platform is expected to be extended to a global network of more than 460 buy-side participants through BIDS’ sponsored access model, Cboe added.

“MATCHNow was an early provider of conditionals in the region and has achieved tremendous success by serving investor demand,” said Bryan Blake, vice president and head of Canadian equities at Cboe Global Markets. “By tapping into BIDS’ technology and distribution network, we expect to drive even greater client adoption of conditionals as the tool of choice for block trading and help grow the overall market to benefit Canadian investors.” 

The launch in Canada follows Cboe’s recent acquisitions of both BIDS Trading and MATCHNow. The exchange group completed the takeover of BIDS in January to expand its equities offerings beyond traditional products and into off-exchange trading. 

Similarly, Cboe completed its acquisition of Toronto-based dark pool MATCHNow from Virtu Financial as it looked to extend its presence in Canada with a holistic equities platform for Canadian markets.