NYSE Euronext and BIDS Holdings, L.P. announced Monday that the U.S. Securities and Exchange Commission has approved their plan to launch the New York Block Exchange.

The new venue, which is designed to improve execution quality and access to block trading liquidity, is a 50/50 joint venture between the two companies and it will operate as a facility of the NYSE. It will launch on January 29.

“By aligning ourselves with BIDS Trading and its investors, we are further demonstrating our ongoing commitment to re-discovering and re-aggregating substantial block liquidity to better serve our customers,” said Larry Leibowitz, group executive vice president and head of U.S. execution and global technology.

“The SEC approval allows us to introduce a true revolution in block trading,” said Tim Mahoney , CEO of BIDS Trading. “By partnering with NYSE Euronext, NYBX orders will interact with additional market participants to provide unparalleled price discovery and access to liquidity in today’s fragmented block trading environment.”

The NYBX will be open to all NYSE members and is also accessible through BIDS Trading, a registered alternative trading system, which has become an NYSE member.

IE