Chi-X Japan, the Japanese proprietary trading system owned by trading venue operator Chi-X Global, has reported turnover of ¥50.2 billion in November, a five-fold increase on October, when shares worth ¥9.6 billion were traded on the platform. In total, 98.3 million shares were traded on Chi-X Japan in November.
“We are encouraged by these results and the positive response we have received from our trading participants,” said Tal Cohen, CEO of Chi-X Global. “While we are still in the early stages, we believe our rapid growth is attributable to investors having been able to realise price improvement and take advantage of the advanced order types that are only available on Chi-X, not to mention the lowest latency, high-capacity network infrastructure and matching engine in Japan.” Cohen added that the Chi-X Japan was looking to introduce new services, such as co-location.
Chi-X Japan launched with just five stocks at the end of July. Its stock universe has been gradually increased and now includes 822 tradable equities, including the Nikkei 225 stocks and 15 exchange-traded funds. Clearing is conducted through the Japan Securities Clearing Corporation. According to Chi-X Japan, it currently has 11 broker-dealer trading participants “with additional participants pending”.
“One of the most encouraging aspects of our launch to date has been the participation of offshore traders who have adjusted their strategies and algorithms to increase Japanese trading in general and take advantage of trading opportunities created by multiple trading venues. We will continue our efforts to attract these investors and contribute to further liquidity growth in the Japanese market,” added Joseph Meyer, representative director of Chi-X Japan.
Chi-X Global is currently 100% owned by Instinet, the global agency broker owned by Nomura. In recent months, discussions have been held with potential investors with a view to diversifying Chi-X Global's shareholder base.