FiNETIK – Asia and Latin America – Market News Network

Asia and Latin America News Network focusing on Financial Markets, Energy, Environment, Commodity and Risk, Trading and Data Management

Derivatives: Struggling Into the New Era – Outlook 2013/14

The past few years have been challenging for the global economy but it seems as though the derivatives industry sustained more than its share of insults and injuries over the past year or so. Still reeling from the trauma of MF Global in October of 2011, exchange-traded volume went into its first nosedive in decades.

Urgent regulatory requirements added intense cost and time pressures to company staffs that were already stretched. A non-clearing FCM, Peregrine Financial, collapsed in scandal. OTC derivatives struggled with complex regulatory mandates and weak volume.

Perhaps the only positive for the year was that mergers and acquisitions at both the macro and micro level imply that innovation and creativity are still powerful industry drivers. That in turn suggests that the creative dynamism that has characterized the derivatives industry for so many years still has some innings to go.

Read the detailed report about Derivatives market outlook, challenges and issue of big deals, exchange mergers and new start ups, customer protection, Regulatory,Extraterritorial and Tax problems  and more. 

Source: WEF 25.04.2013 by Nicolas Ronalds

Filed under: Asia, Brazil, Exchanges, Risk Management, , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Nyse Technologies expands SFTI network in Asia

Nyse Technologies, the commercial technology division of Nyse Euronext, today announced the continuing expansion of its Secure Financial Transaction Infrastructure (SFTI) in Asia with the introduction of two access centres located in Hong Kong.

Customers now, for the first time, have direct access to the SFTI network, allowing them to connect from Hong Kong to services offered by NYSE Technologies through SFTI, including access to Hong Kong Exchanges & Clearing (HKEx), all major international trading venues, market data solutions, plus the NYSE Euronext capital markets community.

As part of the expansion of the SFTI network to include Hong Kong, NYSE has also extended SFTI to the new HKEx Data Centre colocation facility, giving customers there access to all the services available on SFTI through a simple cross connect to their colo racks. NYSE Technologies also plans to expand SFTI in the region to connect other markets like Australia and Korea.

NYSE Technologies’ Secure Financial Transaction Infrastructure provides access to a comprehensive range of capital markets products through a single point of access and offers low-latency trading access to the NYSE Liffe and NYSE Euronext markets. SFTI Asia is the most recent extension of the global backbone, enabling Asian firms to receive market data and trade on multiple markets. Designed to be the industry’s most secure and resilient network, SFTI is specifically built for electronic trading and market data traffic thus enabling firms to reduce their time-to-market, improve their performance and significantly lower the cost of their trading infrastructure. Furthermore, the global backbone allows customers to connect to their trading infrastructure distributed in financial centres around the world using a SFTI connection on the other side of the world.

“The addition of these important access centres in Hong Kong is a further step in the expansion of NYSE Technologies’ footprint and reach of the SFTI Asia network and adds to our established presence in Singapore and Tokyo.” Daniel Burgin, Head of Asia Pacific, NYSE Technologies, commented. “Offering multiple access centres in the Asia Pacific region allows them to use SFTI Asia to connect to regional and global exchanges and markets in a cost effective way through a single connection at each of the client’s locations around the region. This eliminates the overheads and costs associated with maintaining separate network connections in each location to multiple trading venues.”

Source: NYSE Technology 06.12.2012

Filed under: Australia, China, Data Management, Data Vendor, Exchanges, Hong Kong, Japan, Korea, Market Data, News, Singapore, , , , , , , , , , , , , ,

NYSE Technologies opens Tokyo liquidity centre

Nyse Technologies, the commercial technology division of Nyse Euronext, today announced the opening of its latest Liquidity Center installation located in Tokyo, Japan.

With growth in Asian markets outpacing many others in the world, the NYSE Technologies Tokyo Liquidity Center offers customers the ability to access these markets with unparalleled speed and reliability with minimal infrastructure costs and a dramatically decreased time to market of only a few weeks to begin trading.

As a result of several recently deployed trading platforms and enhanced data feeds, Tokyo markets have experienced increased trading activity and a consolidation of liquidity from a robust community of traders and vendors, many of which are already members of the Metabit network acquired by NYSE Technologies in September 2011. Through the Liquidity Center’s low-cost, high performance product suite, customers can access key Asian markets, market information and other essential electronic trading infrastructure services utilizing NYSE Technologies’ SFTI network and other familiar infrastructure services, including the Capital Markets Community Platform. The Tokyo Liquidity Center joins existing facilities in the U.S. and London with additional centers launching in Toronto and Brazil in the coming months.

“In working with our customers to identify their primary trading needs and opportunities, we found that Tokyo and the surrounding Asian markets were a very high priority,” said Stanley Young, CEO, NYSE Technologies. “Our Tokyo Liquidity Center addresses those needs with a powerful blend of proven, familiar NYSE Technologies services with seamless connections to all major Tokyo markets. With little to no hardware investment or complicated maintenance, we can have customers connected in just a few weeks as compared to the challenging expense and arduous process of designing, building and maintaining a similar infrastructure themselves.”

The NYSE Technologies Tokyo Liquidity Center was built to facilitate seamless access to key markets and market information in Asia, including the Tokyo Stock Exchange’s new Tdex+ system and arrowne arrownetTM network. Offering a fully managed, broker neutral trading infrastructure solution that utilizes the technology expertise and customer network recently acquired in the Metabit transaction, the liquidity centers also feature many of the same components customers already use to access NYSE Euronext’s global exchanges. Each installation will feature a turn-key portfolio of trading products that include full-featured connectivity, market data, order transmission and risk management services with world-class customer support.

About the Liquidity Center Network
The NYSE Technologies Liquidity Center Network was created to provide a base set of trading, data and connectivity applications that enable traders to quickly and easily enter key global markets that may have been prohibitively difficult or expensive to access in the past. Customers will benefit from reliable, cost effective low-latency solutions for trading and market data services. Strategically located around the world, these facilities will offer many of NYSE Technologies core services, including Metabit MLH which provides low latency, risk-managed access to markets; SuperFeed™, an industrial strength, high-performance market data ticker plant and distribution system; and Marketplace™, one of the largest and most diverse FIX-based trading communities with more than 1,200 market participants.

Source, Finextra, 15.12.2011

Filed under: FIX Connectivity, Japan, Trading Technology, , , , , , , , ,

Japan: Tokyo and Osaka exchanges to merge into world’s 2nd largest exchange

Tokyo Stock Exchange Group Inc. and Osaka Securities Exchange Co. decided Tuesday to merge on Jan. 1, 2013, to create the world’s second-largest bourse, amid consolidation moves among international rivals, they said.

The total market capitalization of companies listed on the two bourses stood at $3.67 trillion, or 280 trillion yen, at the end of September, placing them only behind the New York Stock Exchange.

The two bourses will merge into a holding company, tentatively named Japan Exchange Group Inc.

TSE President Atsushi Saito will become chief executive officer of the holding company and OSE President Michio Yoneda will be its chief operating officer, they said.

“We are confident that this merger will be the cornerstone in reviving Japan’s economy,” Saito said at a joint press conference held in Tokyo.

In the run-up to the merger, privately held TSE will buy OSE shares for 480,000 yen per share through a public tender offer to acquire a 66.6 percent stake in OSE by next summer.

OSE, a publicly traded company, will be the surviving company in the merger at a ratio valuing TSE at around 1.7 times OSE.

The resulting company will be listed on the First Section of the Tokyo Stock Exchange and run four subsidiaries for stock trading, derivatives trading, clearing services and regulatory operations, according to the bourses.

The merger decision comes amid an international reconfiguration of stock exchanges. NYSE Euronext, which owns the New York Stock Exchange, has agreed to merge with Deutsche Boerse AG by the end of this year.

It also comes as the Tokyo and Osaka bourses are engaged in fierce competition with global rivals such as the bourses in China and South Korea.

“Unless we increase (market) liquidity, there will be companies that will head to overseas bourses,” Saito said, adding, “More than just preventing such moves, we intend to attract them.”

The combination of the TSE with its focus on actual shares and the OSE on derivatives will result in “great synergy” with the ability to provide a variety of financial products, cut costs for running systems and enhance global competitiveness, the two bourse operators said.

While the initial news of the bourses’ intention to merge broke in March, nine months elapsed before the two sides formalized an agreement on Tuesday.

On the length of time they required, Yoneda said, “We have a history of operating separately for 133 years, and there was also the difference of being listed and unlisted, but we’ve cleared each step one by one and now we’re at a starting point,” adding they want to speed up the process from now.

The announcement was generally well received by analysts and other key figures in Japan.

“A bourse with a good balance between cash equities and derivatives would emerge,” said Sadakazu Osaki of Nomura Research Institute, calling it a starting point to compete with other Asian and European bourses.

“Listed companies and investors may not see the merits immediately, but in the long run, it would help avoid the risk of bourses stagnating in Japan,” he said.  Meanwhile, Chief Cabinet Secretary Osamu Fujimura said the government “welcomes” the planned merger.

“It’s an important challenge for our country’s financial market to try to strengthen its competitiveness through the enhancement of its presence as an international financial center,” he said at a press conference.

Filed under: Asia, Exchanges, Japan, News, , , , , , ,

NYSE Euronext Completes Acquisition of Metabit

NYSE Euronext (NYX) announced September 2 the completion of its acquisition of Metabit, a leading Tokyo-based provider of high performance market access products with a trading community of more than 140 trading firms throughout Japan and Asia. As announced previously on Aug. 1, 2011, Metabit will operate as a product line within the NYSE Technologies portfolio (further enhancing service to the Asia-Pacific region). Terms of the acquisition were not disclosed.

Daniel Bürgin, formerly CEO of Metabit, will head the NYSE Technologies Asia business and report to Stanley Young, Chief Executive Officer of NYSE Technologies. Peter Tierney, Managing Director of NYSE Technologies will become the Chief Operating Officer of the combined business in Asia, and he, with Mr. Bürgin, will lead the Asian business operations.

Source: NYSE Technologies, 01.09.2011

Filed under: Asia, FIX Connectivity, Hong Kong, Japan, News, Trading Technology, , , , , , , , , , , , , , , , , ,

2010 Top 10 Developments in Asia’s Electronic Trading Industry;Asia E-Trading

2010 was the year that Asia’s electronic trading industry focused on competition and services in what have traditionally been anti-competitive market places. We recorded over 1000 separate news items this year in Asia alone. We recognize that some of the developments that made our list will not be relevant to everyone but as a neutral third party observer we have come up with a list that we feel are the Top 10 Developments in Asia’s Electronic Trading Industry in 2010.

Original Article: Asia E-Trading 2010 Top Developments

10) The US CFTC now allows Malaysian futures brokers to deal directly with US customer. Perhaps individually not a Top 10 item as other brokers in Asia have been given the nod by the US regulator too. But when taken together with the recent Bursa Malaysia exchange technology upgrades in both the equity and futures segments, migration to the CME Globex platform and the record prices in the Crude Palm Oil contract Malaysia is now poised to take its place as a south-east Asian trading center. It will become a key anchor in the ASEAN link planned in the coming years.

9) China’s Index future launched April 16 after many years of delay was an important development not only for electronic trading but also for China’s budding algorithmic and hedge fund industry. The index has quickly become one of the largest index futures now traded in Asia. Though the back month doesn’t trade as much as it should it will only be a matter of time before that open interest picks up too. It shouldn’t be long before we see index options and an interest rate future for China as well.

8 ) Singapore Mercantile Exchange launched in late August this year. Asia is demanding more and more commodities as wealth and consumption grow around the zone. Generally, in Asia, commodity exchanges tend to offer just one product but the Singapore Merc is offering a basket of commodities to trade both physical and cash contracts. Trading is available in WTI crude, currency, gold and black pepper to name a few. Interestingly, though, is that the SMX is owned entirely by Financial Technologies Group (FTIL) an India based company that will see its exchange compete head on with SICOM, the SGXs commodities arm. Expect to hear more from the SMX this year.

7) The Japan Securities Clearing Corporation (JSCC) began clearing trades for Proprietary Trading Systems (PTS) in August substantially reducing the costs in the post trade for alternatives in Japan. While the playing field still isn’t level with the Primary exchanges, this development at the JSCC was a boost for Japanese PTSs. SBI Japannext, a consortium PTS, has regularly traded 1 percent of daily volume on its venue as a result of this change. We expect fragmentation to accelerate in 2011 in Japan which is already around 3 to 5%.

6) The launch of Chi-east. The joint venture between the Singapore Exchange and Chi-X called Chi-east made it to our list of top 10 developments in Asia electronic trading industry in 2010. The venture is a big step for Singapore in terms of spurring exchange competition and becoming a regional one-stop-shop for trading in Asia. Chi-East is a broker to broker alternative that will offer off-shore crossing using different clearing facilities around Asia.

5) China is now the largest agricultural commodity market in the world with the Dalian Commodity Exchange seeing record volumes in Corn and the Soybean complex. Coupled with the Shanghai Futures Exchange and its metal products the opportunities and future for the electronic trading industry vertical in China and the rest of the world are huge.

4) Exchange competition in Australia. On March 31 the Australian government announced its support for Exchange competition in Australia. While we are still waiting the promise of competition is compelling. The Australian Securities Exchange (ASX) has long held a monopoly over the industry with poor service and high trading fees (explicit and implicit). The ASX passed its supervisory duties to the Australian Securities and Investments Commission (ASIC) August 1 and with the Market Integrity Rules being finalized it shouldn’t be long before trading in Australia is much cheaper and better served. The ASX SGX merger could put a spanner in the works, however.

3) Smart Order Routing in India – SEBI finally permitted Smart Order Routing in India in August of this year much to the National Stock Exchanges chagrin. The Bombay Stock Exchange promptly offered this service to its customers in a bid to take market share from its larger rival. India has the tightest spreads in Asia of around 6bps and with SORs on offer we can expect spreads to tighten even further and volumes to shoot up. This long overdue regulation puts India on the road to offering best execution far ahead of its BRIC peer China. Deutesche equities was the first FII to receive approval for using SORs to both the NSE and BSE.

2) SGX / ASX Merger – We have seen it in the US and Europe and it has finally come to Asia, exchange consolidation. While the news of this reverberated around the world like a tsunami the reality, in AsiaEtrading’s view, is that this is a merger of survival. Both exchanges are very small and in aggregate are still quite small but would command the largest futures market in Asia (not including China’s commodities of course). The announcement is further evidence that Asia is moving to a more competitive industry and should be a wake-up call to the rest of the region. Our webinar on the topic had the panelists agreeing that the merger won’t happen. We’ll wait and see if this merger does indeed take place.

1) We ranked the Tokyo Stock Exchange Arrowhead upgrade as the most important development in Asia’s Electronic Trading industry in 2010. This was a significant and crucial development for one of the top exchanges in the world. Previously, order round trips were around 4 seconds and orders per second were on par with a Starbucks barista. The improved matching engine performance has tightened spreads, increased trading volumes and reduced order sizes. This in turn has attracted more sophisticated traders, reduced implicit trading costs and has generally benefited the Japanese trading industry significantly. Not only that, having come out of 2009 and the aftermath of the GFC, the successful upgrade was the turning point for what was a very activity business in 2010. To us it was the catalyst for the entire industry in Asia.

Source: http://www.asiaetrading.com, 02.01.2011

Filed under: Australia, China, Exchanges, Hong Kong, India, Japan, Malaysia, News, Singapore, Trading Technology, , , , , , , , , , , , , , , , ,

Singapore-Australia exchange tie up threatens Tokyo; Controversy Grows

Japan’s top exchange will seek its own alliances if a planned multi-billion dollar merger of the Singapore and Sydney stock exchanges goes ahead, the bourse’s head said in a report Wednesday.

Atsushi Saito, chief executive of the Tokyo Stock Exchange, told the Financial Times that if SGX’s 8.2 billion dollar offer for ASX went ahead, it would be not be “a good story” for Tokyo.

“If Japan becomes isolated on the international stage — that is not good,” he said. “There are many options. There could be a combination of TSE and others on an international basis.”

Saito’s remarks illustrate how the proposed offer by Singapore’s SGX for ASX has ruffled the region.

“The consensus (among officials at Asian exchanges before the proposed deal was announced) was that such a thing would be impossible in Asia” due to the differences in culture and sense of values, Saito told the newspaper of the proposed deal.

Saito added that if the deal were to go ahead, it could result in a loss for the TSE, which is SGX’s second largest shareholder with 4.9 per cent, the Financial Times said.

“Our shareholdings will be diluted, with our stake falling to about 3.1 per cent. It’s possible we’ll have a loss of hundreds of millions of yen,” he said.

The proposed merger aims to create the world’s fifth biggest exchange with a market capitalisation of about 12.3 billion US dollars, although it first needs to pass regulators and a growing political backlash in Australia.

Analysts say sticking points may include the Singapore government’s large stake in the SGX, which could raise sovereign ownership concerns, and the board’s composition with 11 Singapore representatives and four from Australia.

Source: AFP, 27.10.2010

Controversy grows over SGX’s takeover bid for ASX

The Singapore Exchange’s S$10.7 billion takeover bid for Australia’s ASX Limited faces a difficult road ahead amid political backlash in Australia and shareholder reservations over the deal.

For the transaction to push through, the Australian parliament, currently controlled by a coalition led by the ruling Labour party, would need to lift the 15 percent ownership cap on the ASX bourse. The Australian Treasury could grant a waiver, but the Business Times reports that this could be stymied if any party demands a vote.

Bob Brown of the Greens Party, a key Labour ally, said he was not supportive of the deal given Singapore’s human rights record and the city-state’s execution of an Australian drug smuggler in 2005.

“This is a state that tramples all over freedom of speech, democracy, the rights of oppositions, the ability for public discourse,” he was quoted in a report by the Associated Press. A few other lawmakers also indicated they were inclined to oppose the takeover.

Aside from regulatory approvals, the merger of the two exchanges will also be subject to shareholders’ approvals. But, already, one SGX shareholder has expressed a negative view over the issue.

Under the deal, SGX will issue new shares and pay ASX shareholders a combination of A$22 or S$28.04 in cash and 3.472 new ordinary SGX shares for each existing ASX ordinary share or equivalent to A$48 per share.

Atsushi Saito, chief executive of the Tokyo Stock Exchange (TSE), was quoted by the Financial Times as saying that the transaction could result in a loss for the Japanese exchange, which is SGX’s second largest shareholder with a 4.9 percent stake. He told the UK paper that if the deal were to push through it would not be “a good story” for Tokyo.

Some analysts said the planned acquisition looked expensive. Gabriel Yap, executive chairman of investment firm GCP Global, said the price of A$48 per share “is too high” as it represents 25 times price-to-earnings ratio while the estimated cost synergies and savings at 20% is higher than that achieved in other mergers and takeovers of other exchanges before.

From the point of view of ASX shareholders, “Christmas has come early,” said Yap.

The SGX-ASX deal aims to create the fifth-largest exchange in the world with a market capitalisation of more than US$12.3 billion and to capitalise on opportunities for growth in Asia-Pacific.The press statement on the proposed merger enumerates other benefits.

Source: Fit To Post Singapore, 27.10.2010

Filed under: Australia, Exchanges, Japan, Singapore, , , , , , ,

BMV Mexican Stock Exchange’s Market Performance Report January 2010

Click here to download  SE_BMV Mexican Stock Exchange’s market performance report for January 2010

Source: BMV , 26.02.2010

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Filed under: BMV - Mexico, Exchanges, Latin America, Mexico, News, , , , , , , , , , , , , ,

Tokyo: TSE taps Nyse Technologies for Arrowhead feed handlers

Nyse Technologies, the commercial technology unit of Nyse Euronext (NYX), today announced the successful launch of enhancements to its super-low latency market data platform specifically designed for the Tokyo Stock Exchange’s new Arrowhead trading platform.

As the new equities trading system for the Tokyo market, Arrowhead has been implemented to support increased trading volumes and the performance demands of ultra-fast electronic trading strategies. The new market technology offers new and enhanced data feeds to the industry and NYSE Technologies has successfully launched support for these new feeds on its high performance market data platform.

“We are very pleased to offer our proven feed handlers for the TSE and its Arrowhead platform. Ten large international clients have successfully deployed and tested the NYSE Technologies market data platform and feed handler suite for their Arrowhead trading environments,” said Peter Tierney, Senior Vice President, NYSE Technologies. “The technology was developed by our engineering team in Asia over the past 6 months. This team was established in 2009 with an emphasis on working closely with Asia-based markets and clients to ensure the superior speed, reliability and functionality that our feed handlers and middleware have demonstrated in other markets around the world.”

TSE’s Arrowhead equities trading system went live on Monday, January 4, 2010. Coinciding with the launch, NYSE Technologies’ market data platform was deployed at 10 major trading firms around Tokyo, to provide secure, high-performance feed handling and middleware for the new Light, Standard and Full feeds. The NYSE Technologies solution deploys with either Local Direct Memory Access (LDMA) or Remote Direct Memory Access (RDMA) middleware and supports data presentation in Japanese or Western book formats. The LDMA-based solution has end-to-end latency of 30 microseconds. With its speed and its small datacenter footprint, this solution has already been installed by a number of clients in the TSE’s newly launched co-location site.

In 2009, NYSE Technologies has focused on building enhanced trading support solutions like its market data platform and feed handler suite for all major AsianAsian markets. Support for the Arrowhead feeds brings the number of Asia markets available on the platform to 20.

Source: FINEXTRA, 06.01.2010

Filed under: Asia, Data Management, Exchanges, Japan, Market Data, Trading Technology, , , , , ,

Japan: TSE to launches “ARROWHEAD”, The Next-Generation Equity/CB Trading System

The Tokyo Stock Exchange (TSE) hereby announces that it has decided to launch “arrowhead”, the new equity/CB trading system held to the world’s highest standards of speed and reliability, on January 4, 2010 as planned.

*The final launch decision is expected to be made on January 2, 2010 after transition testing is complete.
For details on TSE Arrowhead New Generation Trading Systems click here at Arrowehead Square

“arrowhead” is the next trading system developed by the TSE for the next generation cash market in order to meet the needs of investors such as high speed order placement and execution processing and to respond to reductions in sizes of orders and rapid increases in the number of transactions. The new system is used for auction trading of stocks and CBs, and supports the Tokyo Market as an exchange system of the highest global standard for low latency, high reliability, and scalability .

Speed

(1) 5 millisecond Order Response(i)

The response time for order acceptance notices has been accelerated.

(2) 3 millisecond Information Distribution(i)

The latency for distribution of stock prices and quote information has been reduced.

(i)Figures based on those from prior testing.

Reliability

Highly Reliable System built with State-of-the-Art Technology

Trading information such as orders, executions, and order books processed on synchronized 3-node data servers.

Scalability

Quick Resonse to Rapid Changes in the Number of Transactions

The system is capable of being expanded within approximately 1 week when needs surpass the current capacity.(ii)

(ii)Capacity is scaled to handle twice the number of orders seen during peak times.

Expansion of Data Distribution

Large Expansion of Market Information

In addition to accelerated market information, the TSE will also significantly expand the content of market data provided to market users in connection. For example, the number of quotes disseminated will increase from 5 to 8 above and below the central price. All order data in the order book will be provided in real-time through the new service named FLEX Full.

Furthermore, various trading rules are to be revised in conjunction with the launch of arrowhead. (i.e. partial revision of tick sizes, price limits, special quote parameters, etc.) In doing so, the TSE hopes to promote smooth execution, and improve price discovery functions and market liquidity.

Source: MondoVision, 03.11.2009

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Liquidnet adds Metabit to its network / リクイドネットの発注管理システムネットワークにメタビットが接続

Lquidnet Japan, the global institutional marketplace, announced today that it has completed the system connectivity development with MetaBit, a Japan-based financial solution provider for institutional investors. Through MetaBit’s intuitive XiliX trading platform, MetaBit users can now join Liquidnet’s 592 Members (as of September 30, 2009) that trade large blocks of stocks among themselves anonymously, with significantly reduced transaction costs. Liquidnet’s patented technology allows institutional asset managers to link order management systems, giving buy-side traders a first look at the world’s largest pool of natural liquidity.

We are pleased to have established connectivity with Liquidnet,” said Daniel Burgin, CEO of MetaBit. “By enabling access to the Liquidnet system, our clients will have the opportunity to expand their block trading capacity to help achieve best execution.”


“We are very excited to partner with MetaBit, a well-respected financial technology provider that services some of the largest and most sophisticated asset managers in Asia,” said Lee Porter, head of Liquidnet Asia. “There is a strong interest among Asian institutions to be considered for inclusion in our marketplace. This agreement will allow those firms that join our marketplace to realize the effectiveness of our trading platform.”

In the third quarter of 2009, Liquidnet had an average trade size in Asian equity securities of US$897,829 which, in some cases, represented several days of average daily volume in some stocks. Despite the challenge of sourcing liquidity of that size, Liquidnet Members traded 95% of transaction within the bid/ask spread and 65% at the mid-price.

Also in the third quarter of 2009, Liquidnet continued to build momentum in the region, as it set quarterly records for principal traded and the number of executions. Liquidnet’s average daily liquidity in Asian equity securities increased over 10% quarter-over-quarter, as a result of the participation of 155 live Members in our system.

Source: Meta-Bit Systems, 01.12.2009

機関投資家向けのグローバルな電子取引市場を運営するリクイドネット証券株式会社(本社:東京都港区)は本日、日本を拠点とする機関投資家向け金融ソリューションを提供するメタビットシステムズ株式会社とシステム接続したことを発表しました。

メタビット社の直載的なXiliXトレーディング・プラットフォームを通じてメタビットのユーザーは592の会員会社(2009930日現在)が匿名で国内外株式ブロック取引を行っているリクイドネットのシステムネットワークに参加することにより、取引コストを大幅に軽減することが可能となります。リクイドネットの特許技術を用いて、機関投資家は自社の発注管理システムを、バイサイドトレーダーに与えられる世界最大級のナチュラルな流動性にリンクさせることが可能となります。

メタビットCEOダニエル・ブルギン氏は、「リクイドネットとのシステム接続が構築されたことをうれしく思います。リクイドネットシステムへのアクセスが可能となることにより、我々の顧客は最良執行を促進するためブロック取引を行うキャパシティを拡大することになるでしょう。」と述べています。

リクイドネットアジアのトップであるリー・ポーター氏は「アジアの最大規模かつ高度に洗練された機関投資家に対しサービスを提供し、業界でも多くの実績を有するメタビットとのパートナーシップに多くの期待を寄せています。多数のアジアの大手機関投資家がリクイドネットのコミュニティに参加することに大きな関心をもっています。今般のメタビットとの接続により、アジアの機関投資家がコミュニティに参加し、リクイドネットの効率的なトレード・プラットフォームについて理解することになるでしょう。」と述べています。

リクイドネットの2009年度第3四半期に取り扱ったアジア株取引の一件当たりの平均取引金額は897,829米ドルで、その内訳には取引所取引高の数日分の取引金額に相当するケースも多数ありました。ボリュームの大きさのため取引所では吸収しきれないブロック注文も含め、リクイドネットのシステムを経由した全ての取引の95%が売り気配値/買い気配値の範囲内で約定されており、65%がその仲値で約定されています。

リクイドネットは、アジア太平洋地域において伸長が著しく、2009年度第3四半期にはアジア株式での総取引金額および取引約定件数で新たな記録を達成し、一日当たりの平均流動性金額も合計155社のメンバーからの参加を通じて対前四半期比で10%上昇しました。
リクイドネットの
2009年度第3四半期に取り扱ったアジア株取引の一件当たりの平均取引金額は897,829米ドルで、その内訳には取引所取引高の数日分の取引金額に相当するケースも多数ありました。ボリュームの大きさのため取引所では吸収しきれないブロック注文も含め、リクイドネットのシステムを経由した全ての取引の95%が売り気配値/買い気配値の範囲内で約定されており、65%がその仲値で約定されています。リクイドネットは、アジア太平洋地域において伸長が著しく、2009年度第3四半期にはアジア株式での総取引金額および取引約定件数で新たな記録を達成し、一日当たりの平均流動性金額も合計155社のメンバーからの参加を通じて対前四半期比で10%上昇しました。

Filed under: Asia, FIX Connectivity, Japan, News, Trading Technology, , , , , , , , , , , , , , ,

Asian dark pool BlocSec removes minimum order size requirement

BlocSec, the first Asian dark pool to cater to the buy-side and the sell-side, owned by CLSA Asia-Pacific Markets (‘CLSA’), will remove the current minimum US$250k or 20% of the 30-day Average Daily Volume (‘ADV’) order size requirement 1.

Removal of such minimum order size requirement will enable smaller size orders to flow into the system, increasing both liquidity and matching. BlocSec clients can continue to submit and trade large size block orders in BlocSec simply by specifying the minimum quantity fill for their executions.

Christian Chan, Director of Electronic Execution Sales, CLSA said: “We continue to improve and respond to client needs and have removed our minimum order size to source and deepen our liquidity pool, so as to provide greater flexibility across the platform and markets in which we operate.”

BlocSec has been designed to ensure complete anonymity for buyers and sellers. Order entry and matching occurs without the risk of giving away client name, side, position or price of an order which means zero information leakage.

“In addition, we have added the ability for our Client Relationship Managers to accept manual orders and route any balances to the CLSA trading desk if instructed to do so. Again, ensuring more flexibility for clients and a smooth and seamless trade flow process,” Chan added.

Since its launch in May 2008, BlocSec has become the preeminent Asian liquidity aggregator and electronic crossing network for Hong Kong, Japan, Singapore and Australian equities with an average daily liquidity flow over US$77m and an average cross size of US$1.04m.

BlocSec provides traders the ability to place orders with complete anonymity and zero information leakage into the market. BlocSec continues to gather momentum and build liquidity in over 800 distinct names with 50% of all clients entering orders securing a match.

As a CLSA group company, BlocSec has a substantial community of institutional investors with the ability to provide a deep pool of liquidity. Liquidity is also maximized as BlocSec is open to both buy and sell side clients.

Source: FINEXTRA 17.11.2009

Filed under: Asia, Australia, Exchanges, Hong Kong, Japan, News, Singapore, Trading Technology, , , , , , , , , , , , ,

Tokyo Stock Exchange lists Indian ETF – S&P CNX Nifty linked ETF

Today, the Tokyo Stock Exchange approved the listing of the “NEXT FUNDS S&P CNX Nifty Linked Exchange Traded Fund” managed by Nomura Asset Management Co., Ltd.. The ETF is planned to be listed on Thursday, November 26, 2009.

This is the first ETF linked to Indian stocks to be listed on markets in Japan. The “S&P CNX Nifty Index” to which the ETF is linked is comprised of the 50 premier issues of the National Stock Exchange of India.

Code 1678 (ISIN JP3047100007)
Name NEXT FUNDS S&P CNX Nifty Linked Exchange Traded Fund
Fund Administrator Nomura Asset Management
Listing Date November 26, 2009
Trading Unit 100 units
Underlying Index S&P CNX Nifty Index

TSE entered into a memorandum of understanding with the National Stock Exchange of India on October 15, 2006. Through this ETF, TSE hopes to supply investors with better access to the Indian securities market and contribute to the development of the markets in both of our countries.

With this listing there will be a total of 69 ETFs listed on the Tokyo market, bringing us closer to the goal of 100 listed ETFs by fiscal year 2010, as laid out in the Medium-Term Management Plan. TSE will continue working to diversify the ETF market and improve the convenience of our market for all investors.

Additional ETF’s listed in Tokyo include Brazil’s IBOVESPA, China A Share CSI300 as well as  ETC (Exchange Trade Commodities) like Gold, Silver, Platinum and Palladium. See also TSE lists Brazilian ETF.

Tokyo Stock Exchange officel ETF site
ETFs on TSE November 2009 (.doc and .cvs)

Source: Tokyo Stock Exchange 06.11.2009

Filed under: Asia, Exchanges, India, Japan, News, , , , , , , , , , , , , , , , , , , , , , , , , ,

Japan:TSE and TOCOM to set up Carbon Trading Joint Venture

Tokyo Stock Exchange Group, Inc. (TSE Group) and Tokyo Commodity Exchange, Inc. (Tocom) reached an agreement to establish a joint venture in the future.

The objective of the new company will be to set up an emissions trading exchange, in order to contribute to the reduction of greenhouse gases and facilitate emissions trading. Both parties had already signed a Memorandum of Understanding (MOU) on comprehensive mutual cooperation in January 2008.

In a bid to stop global warming, worldwide efforts are being made to reduce greenhouse gases. In Japan, achieving numerical targets agreed in the Kyoto Protocol and drafting post-Kyoto mid-term targets have become an important policy issue. In addition, the “experimental introduction of an integrated domestic market for emissions trading” began last autumn.

In light of this situation, while an expansion of emissions trading is foreseen in the future, the recent financial crisis has led to the re-acknowledgement of the importance of the features of an exchange such as high levels of liquidity and transparency as well as stable and reliable settlement.

Under such circumstances, the TSE Group and TOCOM concur that it is necessary to take concrete steps toward the establishment of an emissions trading exchange. The two parties have vast experience and expertise on forming effective markets and large participant bases in the course of operating their respective securities and commodities exchanges over the years. They agree that it is their social responsibility to jointly apply such knowledge and experience to the establishment of an emissions trading exchange.

In addition, both parties will work together to consider the design and rules for the emissions trading exchange. Last year, the Tokyo Stock Exchange (TSE), a market operator wholly-owned by the TSE Group, set up the “TSE Carbon Market Study Group” to examine practical issues required to establish a carbon market exchange with experts on emissions trading. The study group is scheduled to be re-launched soon as a study group jointly operated by both TSE and TOCOM. It will be a venue for discussions and examinations in more detail.

The joint venture company is also expected to gather opinions from concerned parties for carrying out studies in a wide ranging field related to emissions trading.

Source: Tokyo Stock Exchange, 29.10.2009

Filed under: Asia, Energy & Environment, Exchanges, Japan, News, , , , , , , , , ,

MetaBit opens Dalian, China based Offshore Development Centre / メタビット、大連(中国)に開発センターを開設

Tokyo, Dalian, 20 October 2009 – MetaBit announces the opening of a dedicated offshore development centre in Dalian, China.  Staffing and line management have been outsourced to Tiger Stone International, Dalian Branch, a subsidiary of Tokyo based Tiger Stone International Co., Ltd. (TSI).  TSI is a specialist solution provider that services Japan’s financial industry with China based offshore development, and also offers a proprietary product line in the area of algorithmic trading and risk management.

The new dedicated development team managed by Tiger Stone International will focus on providing MetaBit with additional development capacity for rapid expansion of their intuitive XiliX trading platform and ALPHA low-latency FIX exchange gateways to Asian markets.

“After careful evaluation of several options for offshore development, MetaBit has selected Tiger Stone International in Dalian, China to be the responsible party to offer us their services.  Of particular importance in the selection was our confidence in Tiger Stone International’s trusted leadership and professional skill set,” comments Daniel Burgin, MetaBit CEO who continues, “Cost effective labor is still plentiful in Asia, but eventual success, efficiency and longevity of offshore development are built on trust and the quality of local management to represent our interests.  TSI offered low cost development in China, trusted leadership, and extensive technical and business experience in the financial industry, proving a compelling solution.  This new partnership represents an important milestone in MetaBit’s strategic expansion in Japan and Asia.”

John Edwards, MetaBit CTO explains, “Sydney will remain the core development centre of MetaBit and will continue to grow, albeit at a slower rate than in 2008/2009.  Jointly with Tiger Stone we have established an extensive know-how and training program to create an efficient and solid China based development centre.”

Huyan Song, Tiger Stone International CEO ,was born and educated in Mainland China and has spent his working career in Japan’s financial industry, gaining specialist expertise in the FIX Protocol, risk management and algorithmic trading solutions.

Song comments, “Tiger Stone delivers a dual service to the financial industry; the combination of providing offshore services, and licensing our own product line which focuses on algorithmic trading and risk management solutions for buy and sell side clients.  Due to our industry expertise, we employ skilled labor that is bilingual Chinese/English or Chinese/Japanese.  We have had a successful partnership with MetaBit since 2008, with focus on product synergies.  Today, I am pleased that the relationship has expanded to leverage Tiger Stone’s offshore development services.  As of October, an initial six of our Dalian based staff have been dedicated to MetaBit, and are currently undergoing an extensive training program to familiarize themselves with MetaBit’s technology and products.  Tiger Stone’s own product line of algorithmic trading and risk management is tailored for mid-tier securities firms that face the need to offer such services to institutional buy sides, but suffer from lack of internal resources and expertise.”

メタビットシステムズ株式会社(以下メタビット)は、大連(中国)に開発センターを開設することを発表しました。スタッフと現地のマネージメントは東京に本社があるタイガーストーンインターナショナル株式会社(TSI)の子会社、タイガーストーンインターナショナル大連支社に外部委託することになりました。TSIは中国を拠点に日本の金融機関に開発のアウトソーシングと、自社開発製品のアルゴリズム取引とリスク管理分野における製品を提供しているスペシャリストです。

タイガーストーンインターナショナルによって新しくメタビットの開発に従事するチームは、メタビットの直観的トレーディング・プラットフォームXiliX(ザイリクス)および低レイテンシーFIX取引所ゲートウェーAlpha (アルファ)のアジア市場での急速な拡大に必要な開発力を補助することになります。

メタビットCEOダニエル・ブルギン氏は、「オフショア開発の様々な選択肢を入念に評価した結果、メタビットはタイガーストーンインターナショナルの大連支社にサービスを提供していただくことを決定いたしました。決定に際し特に重視した点は、タイガーストーンインターナショナルの信頼あるリーダーシップとプロフェッショナルな技術力にありました。また、アジア地域における低コストの労働力は数多く存在しますが、最終的に成功と効率性をもたらし長期的にオフショア開発を行うには信頼と我々に代わって取り仕切る現地管理の質の上に成り立つものです。TSIは中国において 低コストでサービスを提供しつつ信頼のあるリーダーシップ、豊富な技術力と金融機関での実績があり、決定にいたりました。この新たなパートナーシップはメタビットの日本とアジアにおける戦略的市場拡大の重要かつ画期的な出来事であることを表しています。」と述べています。

メタビット技術部長ジョン・エドワーズ氏は、「シドニー支店はメタビットの中枢技術開発センターとして2008年、2009年の増員と比べると多少緩やかにはなりますが今後も増員していく予定です。タイガーストーンと共同で広範囲なノウハウとトレーニングプログラムを構築し実践的で強力なオフショア開発センターを中国につくることができました。」と述べています。

タイガーストーンインターナショナルCEO松木虎岩氏は中国本土の出身で日本国内の金融機関においてFIXプロトコル、リスク管理およびアルゴリズム取引システムソリューションの専門知識を得ました。

松木氏は、「タイガーストーンは金融機関に二つのサービスを提供しております。オフショアアウトソーシングサービスおよび自社開発製品であるアルゴリズム取引とリスク管理ソリューションをバイサイドとセルサイドに提供しております。弊社は中国語/英語もしくは中国語/日本語のバイリンガルで技術力の高い人材を採用しています。メタビットとは2008年より両社製品の相乗効果を目的としたパートナーシップを提携しております。今日、メタビットがタイガーストーンのオフショア開発サービスを活用していただいていることを嬉しく思います。10月時点では大連支社から6名のエンジニアがメタビット開発の専属となり、現在集中的なトレーニングプログラムによってメタビットの技術と製品を学んでいます。タイガーストーンのアルゴリズム取引とリスク管理システムは、バイサイド顧客にそのようなサービスを提供する必要性に直面しながら不十分な社内リソースと専門知識のために躊躇している中堅証券会社向けに開発された製品です。」と述べています。

Source: MetaBit, 20.10.2009メタビット

Filed under: China, FIX Connectivity, Japan, News, Trading Technology, , , , , , , , , , , , , , , , , ,

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