Proprietary trading system (PTS) Chi-X Japan is to introduce a new passive order type that only posts liquidity to the order book from 14 November.
Designed to rest on the Chi-X book and never take liquidity by trading against existing passive orders, the post-only order type rejects any crosses that are made with other resting orders.
The introduction of the new order type comes as competition continues to ebb and flow between Japan’s rival PTSs. In October, Chi-X Japan accounted for 2.31% market share, according to figures provided by Thomson Reuters.
Although representing a slight increase over the 2.23% achieved in September, rival PTS SBI Japannext did even better, overtaking Chi-X in October to account for 2.45% market share, up from 1.91% the previous month.
In comparison, the Tokyo Stock Exchange held 90.77% market share in October, while the Osaka Securities Exchange had 4.23%.
Chi-X Japan’s parent company, Chi-X Global, unveiled new stakeholders in October, with five firms acquiring minority stakes in the exchange operator and trading technology provider from agency broker Instinet, which remains the majority shareholder.
Overall trading volumes in Asia have struggled recently, with volumes reaching a year-low of US$1.19 trillion in October, compared to US$1.28 trillion in September. Japanese equities volumes fell from US$341 billion in September to US$309 billion in October.