BlocSec, a pan-Asian non-displayed trading system owned by agency brokerage CLSA Asia-Pacific markets, is to remove its minimum order size requirements in a bid to attract greater liquidity to its platform.
Currently, orders entered on to the platform must either be a minimum of US$ 250,000 or 20% of the 30-day average daily volume of a stock. Despite the removal of these two requirements, clients that want to continue trading in block size will be able to specify the minimum quantity fill for the executions they receive.
According to BlocSec, the removal of the minimum order size requirements will allow the trading of smaller size orders and increase matching rates. In May this year, the minimum order size was cut to US$ 250,000 from US$ 1 million, in response to falling block sizes in the Asia-Pacific region.
“We continue to improve and respond to client needs and have removed our minimum order size to source and deepen our liquidity pool, so as to provide greater flexibility across the platform and markets in which we operate,” commented Christian Chan, director of electronic execution sales, CLSA, in a statement. “In addition, we have added the ability for our client relationship managers to accept manual orders and route any balances to the CLSA trading desk if instructed to do so.”
BlocSec currently has an average daily liquidity flow of US$77 million and an average cross size of US$ 1.04 million. It currently offers trading in Hong Kong, Singaporean, Japanese and Australian equities.