Chi-East is an independent, non-displayed trading venue for select securities listed in Australia, Hong Kong, Japan and Singapore. Following its launch, Chi-East expects that participants trading on the platform will be able to provide their clients with better execution options, including reduced market impact, tighter spreads, low latency as well as cost-efficient clearing and settlement processes. As an independent liquidity aggregator, Chi-East will also allow sellside firms to access deeper liquidity by crossing their internalised trade flows with each other.
Ned Phillips, CEO of Chi-East, commented: "We are delighted that Chi-East has received regulatory approval to launch Asia's first exchange-backed, non-displayed trading venue in Singapore. By offering a cost-efficient execution venue combined with efficient clearing and settlement processes, Chi-East should deliver lower trading costs to both our clients and their end investors. We have already had tremendous support from our potential participants and we look forward to successfully growing this business."
Fumiki Kondo, Chairman of Chi-X Global, said: "Based on our experience in other markets, we expect the launch of Chi-East, as a pan-Asian platform, to complement existing marketplaces by supporting a more liquid trading environment in Asia. Over time, we believe this will attract new investors to the region."
Gan Seow Ann, Chairman of Chi-East and President of Singapore Exchange, said, "Chi-East will play a key role in enhancing the trading infrastructure in this region, thereby stimulating trade flows and deepening liquidity. Singapore Exchange is proud to be part of this innovative venture for our customers."
As an exchange-backed trading venue, Chi-East will maintain full post-trade price and volume transparency through public data providers such as Bloomberg, Thomson Reuters, Sungard and Fidessa. Chi-East, through LCH.Clearnet, will also support the first Central Counteunterparty Clearing (CCP) model in Asia. Japanese and Australian stocks will be cleared by LCH.Clearnet, Singapore securities will be settled through SGX's Central Depositary (CDP), while Hong Kong listed stocks will continue to be cleared under the local clearing infrastructure.