Understanding CX, CXXT, and NXXT in the Australian Securities Exchange

CX: Midpoint Price Trade

CX denotes a trade executed in ASX CentrePoint at the current midpoint price. The midpoint price is calculated by ASX as the middle point between the prevailing ASX bid and offer prices.

Key Facts

CX and CXXT are trade terms used in the Australian Securities Exchange (ASX) CentrePoint.
CX represents a trade that has occurred in ASX CentrePoint at the current midpoint price.
The midpoint price is determined by ASX and is the midpoint between the current ASX bid/offer spread.
CXXT, on the other hand, refers to a cross trade or crossing that has occurred in ASX CentrePoint at the current midpoint price.
A cross trade is when a broker executes an order to buy and sell the same security at the same time, with both the buyer and seller being clients of the broker.
NXXT is another term related to trading and crossing. It represents a crossing that has occurred at the current National Best Bid and Offer (NBBO) Price.
NBBO stands for National Best Bid and Offer Prices, which are the highest bid price and lowest offer price that all buyers and sellers are willing to accept for a particular stock.
The NBBO crossing typically happens when a broker, like CommSec, matches your order with another client order through their crossing system.
The crossing reported at a price within the NBBO price does not disadvantage the trader and may even result in faster execution or a better price than on public trading venues.

CXXT: Cross Trade

CXXT represents a cross trade or crossing that has taken place in ASX CentrePoint at the current midpoint price. A cross trade occurs when a broker facilitates the simultaneous purchase and sale of the same security, with both the buyer and seller being clients of the broker.

NXXT: NBBO Crossing

NXXT refers to a crossing that has occurred at the current National Best Bid and Offer (NBBO) Price. NBBO encompasses the highest bid price and lowest offer price that all buyers and sellers are willing to accept for a specific stock.

NXXT crossings typically occur when a broker, such as CommSec, automatically matches an order with another client order through their internal crossing system. The crossing is reported at a price within the NBBO range, ensuring that traders are not disadvantaged and may even benefit from faster execution or more favorable pricing compared to public trading venues.

Sources

FAQs

What is CXXT?

CXXT refers to a cross trade or crossing that has occurred in ASX CentrePoint at the current midpoint price.

What is a cross trade?

A cross trade occurs when a broker executes an order to buy and sell the same security at the same time, with both the buyer and seller being clients of the broker.

How is the midpoint price determined?

The midpoint price is calculated by ASX as the middle point between the prevailing ASX bid and offer prices.

What are the benefits of CXXT?

CXXT can offer several benefits, including faster execution, better pricing, and reduced market impact compared to executing the trade on a public exchange.

When does CXXT typically occur?

CXXT typically occurs when a broker has multiple client orders for the same security and can match them internally, eliminating the need to send the orders to the public exchange.

Is CXXT always reported at the midpoint price?

No, CXXT can be reported at a price within the current National Best Bid and Offer (NBBO) range, ensuring that traders are not disadvantaged.

Can CXXT be used for all types of securities?

CXXT is typically used for liquid securities with high trading volumes, as it is more likely that the broker will have multiple client orders to match.

Are there any risks associated with CXXT?

While CXXT can offer several benefits, it is important to note that there is a risk that the broker may not be able to match the orders internally, in which case the trade may be executed on the public exchange at a less favorable price.