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Instinet, a global leader in electronic trading and agency-only brokerage services, today announced that it has been named “Best Alternative Trading Venue Provider” by AsianInvestor Magazine in its 2010 Service Provider Awards (http://www.asianinvestor.net/News/236705,day-4-asianinvestor-2010-service-provider-awards.aspx).
“Instinet has a long and distinguished history of producing superior electronic trading products for institutional investors around the world, and we are obviously quite pleased to be recognized once again,” said Kym Graham, Head of Asia-Pacific Sales.
He continued: “Our four liquidity pools in Asia are among the largest, most liquid venues in the region, and enable our global client base to realize high crossing ratios in both liquid and illiquid names. Together with our award-winning Newport® 3 EMS, Execution Experts™ algorithms and InSight analytics suite, our liquidity sourcing capabilities round out one of Asia’s most robust electronic trading platforms.
Mr Graham also cited Instinet’s role as a liquidity aggregator as a major driver for its success as a provider of alternative liquidity.
“Liquidity sourcing – and not just from our venues, but from ten others as well – is a key component of Instinet’s value proposition around the world. Our Nighthawk® dark liquidity aggregation algorithm allows our clients in Asia to dynamically and efficiently interact with dark liquidity throughout the region.”
In 1969, Instinet launched the world’s first electronic trading platform, and in 1986 launched the first crossing network. Today, Instinet operates ten alternative trading platforms around the world, including four in Asia:- CBX™ Hong Kong: As a continuous, displayed limit order book that supports advanced order types (including pegged, iceberg and hidden), CBX Hong Kong allows parties to realise price improvement and minimise market impact, while locating block liquidity. The platform also offers an alternative to the now-defunct Hong Kong closing auction. Clients can trade continuously and anonymously from 07:30 – 18:30 HKT, with executions filled at the HKEx’s published closing price. This allows clients to meet the closing price benchmarks, while the after-hours trading of residuals enables parties to potentially find a natural trading partner. CBX Hong Kong also enables passive trading through Instinet’s Newport 3 EMS blotter interaction technology.
- CBX™ Japan: CBX Japan is the first hybrid displayed and dark liquidity pool in Japan, with lit orders having matching priority over dark orders. Once a successful match has occurred, Instinet has the ability to send “indicative fill” messages simultaneous to the messages being sent to the trade reporting facility (ToSTNet for TSE-listed stocks and J-NET for OSE-listed stocks) to resolve any latency reporting issues, thereby allowing automated trading systems to more efficiently manage their exposed orders.
- JapanCrossing™: Operated under Instinet Japan Limited’s PTS (Proprietary Trading System) license, JapanCrossing™ provides an anonymous, safe environment to trade illiquid and sensitive orders. With two pre-market VWAP (Volume Weighted Average Price), AM and PM session closing crosses, JapanCrossing allows clients to meet various pricing benchmarks while minimising market impact to reduce transaction costs. In October 2010, JapanCrossing crossed an average of $74.5 million (USD) per day.
- KoreaCross™: As the market’s first independent securities crossing network, KoreaCross provides an anonymous, safe environment to trade Korean equities. Operated by Instinet and supported by Samsung Securities, who serves as the local broker sponsor and provides domestic order flow, KoreaCross allows clients to achieve VWAP while minimising market impact. The platform allows for short sells and will aggregate client order flow to more easily meet the Korean market’s 100 million KRW (Korean Won) minimum order size requirement.
