Nomura, the global investment bank, has announced that it will launch NX (NomuraCross), its non-displayed global crossing network, in Hong Kong at the end of May 2010 after it received approval for an Automated Trading Services (ATS) license by the Securities and Futures Commission (SFC).
NX Interactive Crossing Network
Nomura will begin trading listed Hong Kong equities in NX across all of its institutional order flow, including single stock work orders, program trading, electronic trading services and principle trading. After NX crosses orders, it will automatically report the trades to the Hong Kong Stock Exchange (HKEx).
Robert Laible, head of Electronic Trading Services and Program Trading Sales, Asia-Pacific, said, "Launching NX in Hong Kong further enhances our offering to clients by delivering solutions to achieve best execution, minimizing trading costs and bolstering Nomura's electronic trading platform in the region."
Ross Whittaker, Product Manager for NX Asia-Pacific, commented, "Our product strategy enables us to strike the right balance between satisfying client requirements and ensuring our product is fully compliant with local market rules and standards."
"The NX architecture provides global-standard capabilities with components that are customized to adapt to the regulatory environment in the jurisdictions in which it operates. The process of going live in Hong Kong will clearly benefit from this strategy," Mr Whittaker said.
By crossing orders in NX, clients will benefit from both anonymity and price improvement. Orders placed in NX will not be displayed externally or internally, allowing participants to place orders without revealing information, thereby minimizing market impact. NX will provide clients with the opportunity for price improvement in Hong Kong by accessing a central pool of liquidity formed by Nomura's agency and principle order flow and crossing orders within the bid-ask spread published on the HKEx.
The rollout of NX in Hong Kong is the latest in a series of enhancements for Nomura's global build-out of its crossing platform. Nomura went live with NX in Japan and the U.S. in late 2009. In January 2010 it established NX as the first principal broker dealer Multilateral Trading Facility (MTF) dark pool in Europe, where it regularly ranks amongst the top crossing platforms in terms of volume.
NX in Hong Kong complements an extensive range of electronic trading products and analytical tools and services Nomura offers. These include the ModelExTM algorithmic trading suite, the TradeSpexTM toolkit for portfolio and single stock analytics, and the Direct Market Access (DMA) products providing intelligent order handling services across major markets in Asia-Pacific. By combining its products with value-added execution advisory services, Nomura's clients enjoy a truly broad spectrum of offerings in the electronic trading space.