BlocSec, the first Asian dark pool to cater to both the buy side and the sell side launched by CLSA Asia-Pacific Markets earlier this year, is now offering block trading services in the Hong Kong market in addition to those already available in Singapore and Japan.
In the first week since the launch of the service in Hong Kong to existing CLSA Group clients on 14 August 2008, more than US$1.1 billion of liquidity has passed through the BlocSec platform at an average of US$243 million per day. The recent successful crosses in Hong Kong add to those already achieved in Singapore and Japan.
The service offers both buy and sell side participants an anonymous crossing network that eliminates information leakage and reduces the potential for negative market impact. Since its launch, more than 75 companies have signed up to trade via the BlocSec platform.
BlocSec CEO Ned Phillips said he was highly encouraged by the response to the BlocSec service and to the launch of the Hong Kong market. Since launching, BlocSec has seen liquidity in a total of 356 different stocks, with an average cross size of US$1.15 million.
"There is clearly demand for this type of service in Asia. Dark pools have become an essential part of trading strategy in the US and Europe and we are excited to be one of the first dark pools in Asia. We firmly believe that clients benefit greatly from improved liquidity and execution through the BlocSec platform," Phillips said. BlocSec is built on the latest technology to provide an electronic marketplace with continuous and high speed order matching and execution. The minimum order is USD$1 million on a firm order basis only. A choice of crossing options is available from the traditional mid-point, passive and aggressive, through session-based and full day VWAP, as well as a last-close option.
Clients customize when and how to interact with the system. They can connect from their existing OMS using FIX, via the Bloomberg EMS or using the BlocSec web-based application front-end.
BlocSec commenced operations on 15 May 2008 with Singapore and Japan markets and added Hong Kong on 14 August 2008. Korea and Australia are expected to follow at a later date.