trading system (PTS) SBI Japannext broke the 5% barrier in trading volumes on
Friday 18 May, the first time a PTS has taken that much share of the trading on
the Tokyo Stock Exchange (TSE).
launched at the end of 2006, had been running largely neck and neck with Chi-X
Japan, the local platform of Chi-X Global that bowed in 2010, but has pulled
ahead of its newer rival in recent months. In April, SBI Japannext had a market
share of 2.9%, compared to Chi-X Japan’s 2.09%, according to figures from
of course to have achieved 5% last Friday, and we did 4.82% today [Wednesday 23].
We are trying to continue to grow our market share organically, though overall
volumes on the TSE are pretty flat,” said SBI Japannext CEO Chuck Chon.
on the TSE have been falling steadily in recent years, with the average daily
volume dropping by a third since 2008, while daily trading value has more than
halved over the same period. The Nikkei 225 index closed down 1.98% at 8.556.6
on Wednesday, hitting a four-month low and giving up nearly all the gains
achieved during the rally in the first quarter of the year.
SBI Japannext is
upgrading its trading engine to the X-stream INET platform from Nasdaq OMX,
which is expected to come fully online in September and will allow it to trade
orders in less than 100 microseconds. The alternative trading venue is also in
discussions with three new members, who are due to sign up within the next
of the two main PTSs now exceeds that of the Osaka Securities Exchange (OSE),
though the bourse’s traditional strength lies in derivatives rather than
equities. The OSE is due to merge with the TSE in January 2013, subject to
One of the main
motivations for the merger is widely believed to be the increased competition
from the PTSs. Opponents of the OSE/TSE tie-up have pointed out that it will
increase the domination of the central exchange at a time when the global trend
is towards fragmentation of liquidity.