Instinet, a global agency broker, today announced the addition of a new after-market cross to JapanCrossing, its off-exchange, proprietary trading system (PTS) for Japanese equities.
The new cross, which runs at 15:30 (JST) and matches orders at the last traded price of the Tokyo Stock Exchange's PM session, becomes JapanCrossing's third daily cross, joining a pre-market VWAP cross and morning close cross.
"Given the recent strength of the Japanese market, clients are increasingly looking for off-exchange liquidity to minimize market impact," said Joseph Marchal, president and managing director, Instinet Asia. "Consequently, we felt the time was right to add an after-market cross to JapanCrossing, giving clients yet another venue to leverage in the search for best execution."
Instinet is the only US agency broker in Asia that is a member of both the Tokyo and Osaka Stock Exchanges, and JapanCrossing is the only alternative trading system (ATS) in Asia. Since its introduction in 2001, JapanCrossing's liquidity pool has grown steadily, representing 3.9 percent of the TSE's total daily turnover in Q1. JapanCrossing is an anonymous, safe and neutral venue for institutional investors to place illiquid Japanese equity orders, with 77 percent of overall cap weighting in either small or mid-cap stocks in June 2006.
Instinet's JapanCrossing is comprised of the following three daily crosses:
Pre-Open VWAP Cross - 8:30 (JST):
Orders are accepted anytime before 8:25 on the morning of the cross, with the match being run at 8:30. Reports on preliminary executions and residuals are sent by 8:40, and final priced execution reports are confirmed after VWAP has been updated in the primary market (approximately 15:10).
Last Traded Price (AM Session) Cross - 12:00 (JST):
Orders are accepted anytime before 11:55 on the morning of the cross, with the match being run at 12:00 and report of priced executions and residuals sent by 12:10.
Last Traded Price (PM Session) Cross - 15:30 (JST):
Orders are accepted anytime before 15:25 on the morning of the cross, with the match being run at 15:30 and report of priced executions and residuals sent by 15:40.
In addition, Instinet also offers in Japan its Continuous Block Crossing (CBX) network, a 24-hour, global electronic market where traders can negotiate and trade blocks of stock with natural counterparties at mutually agreed prices. CBX is the only such block crossing system in Asia, and allows institutions to trade any global security - not just Japanese equities - regardless of time of day.