The ASX code
SCXT is likely a special cross trade for a specific security, where
S indicates a special trade,
C means cross trade, and
XT specifies the type or tier of the special crossing. This type of trade, where a broker buys and sells the same security at the same time for different clients, can result in faster execution at competitive prices. Recent updates have simplified the reporting of special cross trades with the new code SC replacing older codes like S1, S2, and S3 for certain equity trades.
SCXT breakdown
- S: Indicates a "Special" trade, which might be a block trade or a crossing where pre-trade transparency rules are modified under specific conditions.
- C: Stands for "Cross" trade, where the broker executes both the buy and sell orders for the same security simultaneously for different clients.
- XT: Specifies the particular type or tier of the special cross trade.
Key features of special cross trades
- Faster execution: The trade may be executed faster than if sent to public trading venues, as it's an internal cross.
- Competitive pricing: The trade is executed at a price within the current National Best Bid and Offer (NBBO), meaning the client is not disadvantaged.
- Simplified reporting: The ASX has introduced a new SC condition code for special cross trades to simplify reporting, replacing older codes like S1, S2, and S3 for equity market products.