Chi-East, a joint venture of Chi-X Global and Singapore Exchange Limited (SGX), and LCH.Clearnet Limited (LCH.Clearnet) announced today that Chi-East will appoint LCH.Clearnet as the central clearing facility for its pan-Asian non-displayed trading platform, scheduled to launch in mid-2010.
LCH.Clearnet's EquityClear service will clear the Australia, Hong Kong and Japan-listed securities available for trading on Chi-East, subject to agreeing terms with Chi-East and the requisite regulatory approvals. SGX-listed stocks will be cleared and settled through The Central Depository (Pte) Limited (CDP), SGX's securities clearing house and depository, via SGX's securities clearing members.
"Providing a centralised clearing facility for our trading participants is an integral part of our overall business strategy. After a rigorous due diligence process we are confident that LCH.Clearnet will be an ideal partner to assist us in helping to lower the overall frictional cost of trading within the region. This relationship ensures Chi-East will have robust, reliable and integrated architecture through all stages of the trade," said John Lowrey, a Director of Chi-East.
Wayne Eagle, Director, Equity Services, LCH.Clearnet, said, "We are delighted to be a part of such an innovative venture. Asian markets are developing rapidly and we are pleased to expand our offering in the region at such an exciting time. Our appointment demonstrates recognition of the effectiveness and flexibility of our market-leading EquityClear service and the overall quality of LCH.Clearnet's offering."
In August 2009, Chi-X Global joined forces with SGX to develop and launch the first exchange-backed non-displayed trading platform in Asia, starting with select securities listed in Australia, Hong Kong, Japan and Singapore. The non-displayed trading platform will operate with the appropriate regulatory approvals and controls, reporting, settlement systems and compliance standards. The name Chi-East was chosen to leverage Chi-X Global's strong global brand, while at the same time emphasizing the venture's commitment to, and focus on, Asia.
Chi-East will act as an independent liquidity aggregator for the sell side and offer another execution option in the form ofof a non-displayed venue that will expand the range of available solutions for conducting block transactions with price improvement. Chi-Tech, the technology subsidiary of Chi-X Global, will provide the technology for the new trading platform.
"The response from potential users of Chi-East has been extremely positive, as we have made good progress towards launching this highly efficient, independent non-displayed liquidity venue by mid-2010," added Lowrey.