Instinet Incorporated, a global leader in electronic trading and agency-only brokerage services, today announced that its Asia-ex Japan agency brokerage subsidiary, Instinet Pacific Limited, has successfully added Hong Kong equities to its leading off-exchange, displayed liquidity pool, CBX ASIA.
The CBX platform has allowed for the trading of Japanese equities since 2001.
"Over the past few years, we've seen traders in Asia increasingly embrace crossing networks and alternative liquidity pools for the execution quality benefits they bring through their anonymity and advanced order functionality. Given that trend and the success we are seeing in Japan, clients have expressed interest in extending CBX to other Asian markets," said Nick McDonald, Co-Head of Asia-Pacific Equities at Instinet. Hong Kong is Instinet's second largest market in Asia, which makes it the most natural choice to introduce CBX after Japan.
Added Christian Chan, Head of Electronic Trading, Asia-Pacific at Instinet: "In our experience around the world, we've found that a successful ATS requires the right mix of technology, liquidity and operational know-how. We feel we've found this balance with CBX in Japan, and we hope to replicate that success throughout Asia."
Launched in Asia in 2001, first in Japan under Instinet's Japanese PTS (Proprietary Trading System) License, CBX ASIA is a real-time, low-latency central limit order book with traditional price/time priority and rich order functionality. Unlike Instinet CBX in the U.S., which is based on the same technology and is the market's second largest independent dark pool, CBX ASIA is a displayed platform whose market data is available to clients, as fully-hidden orders are prohibited under securities laws in certain Asian jurisdictions.
CBX ASIA, which is available to both institutions and broker-dealers, is accessible through Instinet's Newport 3 EMS and Asia SmartRouter, directly via FIX or through third-party OMS/EMS. Market data is available through ThomsonReuters and ACTIV Financial Systems.
In addition, Instinet operates two "dark" crossing platforms in Asia - KoreaCrossTM and JapanCrossingTM. KoreaCross, which was launched in partnership with Samsung Securities earlier this year, is one of the Korean market's only crossing networks. JapanCrossing, which has been available since 2001, remains Asia's largest source of off-exchange liquidity, with "hit" (orders with at least a partial fill) and "cross" (orders with a complete fill) ratios among the industry's highest.
NOTE: CBX ASIA is the brand name for Instinet's CBX platform in Asia and is not licensed or regulated in any market as a pan-Asian platform. Instinet's CBX offerings in each market are regulated under the relevant rules and regulations governing each jurisdiction.