News and resources on capital markets, exchanges, trade execution and post-trade settlement.

PhillipCapital and SBI collaborate on trade matching platform for US equities in Asian time zone

Source: SBI

Mr. Lim Hua Min, Chairman, PhillipCapital Group and Mr. Kitao Yoshitaka, Chief Executive Officer, SBI Holding (SBI Group) have announced the collaboration between Singapore’s PhillipCapital and Japan’s SBI Group to create a Trade Matching Platform for the trading of US-listed equities during Asian time zone.

A new joint-venture company will be created in Singapore in the second quarter of 2022, with an initial capital of USD1 million with subsequent increment to USD6 million for full operations, with PhillipCapital occupying 70% ownership, and SBI Group, 30% as shareholders. The key personnel will be transferred from both entities. The joint-venture company will be responsible for developing and maintaining the Trade Matching Platform mentioned below. The company has intention to apply or a Recognised Market Operator licence from the Monetary Authority of Singapore.

For the creation of the Trade Matching Platform, PhillipCapital Group’s system development company, CQ TDT Asia in Vietnam, together with the support of SBI Group, will develop the matching engine for the trading of US-listed equities during the Asian time zone. Over 100 US-listed stocks are expected to be tradable from 9:00 to 17:00 Singapore time. Singapore institutions and overseas institutions, overseas retails through brokers (subject to authorisation of local authority) and liquidity providers will have access to the trading platform. SBI SECURITIES, a member of the SBI Group, is in the process of considering connectivity to the trading platform, to meet growing demand from its Japanese clients.

The trading platform is expected to be fully operational by 1Q 2023. The expected trading volume upon full operation is expected to exceed USD100 million per day in the first year.

Mr. Luke Lim, Managing Director, Phillip Securities, a member of PhillipCapital Group commented, “PhillipCapital Group has a strong working relationship with the SBI Group for more than 10 years, mostly but not limited to the securities business. It is a great pleasure to work together with the SBI Group on this new trading platform initiative.”

SBI Holdings’ Representative Director, President and CEO, Yoshitaka Kitao commented that “it is crucial for us to provide Japanese investors with the opportunity to trade US-listed equities in the daytime. We expect this new platform will enhance our customer experience and expand our securities business.”

Phillip Securities’ Executive Director in charge of this project, Mr Hitoshi Shimoyama, who is expected to be appointed as CEO of the Joint Venture commented that “both PhillipCapital Group and the SBI Group have observed the growing demand from Asian investors to trade US-listed equities during the Asian time zone. With this new platform, Asian investors do not need to wait till Asian midnight hours to trade US equities on the US exchanges. We do not need to wait next day morning to be informed whether clients’ orders have been executed. Asian investors will be able to place and execute orders in the day.”

Comments: (0)