Chi-X Global, the holding company for the Chi-X execution platforms and Chi-Tech trading technology firm, has started the application process for a proprietary trading system (PTS) licence in Japan and has appointed key staff ahead of the launch.
The new platform – dubbed Chi-X Japan KK – has filed an application with domestic regulator the Japan Financial Services Agency (FSA) with a view to launching the trading system by mid-2010.
Once operational, Chi-X Japan KK expects to clear and settle trades through the Japan Securities Clearing Corporation, which recently outlined plans to service PTS trading flow by July 2010, subject to regulatory approval.
“Between the JSCC’s anticipated move and the expected launch of Tokyo Stock Exchange’s Arrowhead trading system early next year, we believe the Japanese equity market is set to enter into an exciting new era,” said Joseph Meyer, chief operating officer of Chi-X Japan and representative director of the new PTS, in a statement. “This represents a tremendous opportunity for both the Tokyo Stock Exchange and the PTSs, since, as we’ve seen in other markets, competitive, high-speed platforms contribute to efficient trading environments that benefit all participants in the trading process, including investors, brokers and the primary exchanges.”
Chi-X Global has also hired of Yasuo Hamakake as chief technology officer and Toru Irokawa as chief administration officer for its new Japanese platform.
Hamakake, previously head of the information technology division at Deutsche Securities, will be responsible for technology development. Irokawa, who will be responsible for internal control, joins Chi-X from Shinsei Bank, where he was head of the asset management sub-group.
“The high-speed, low-cost and intelligent Chi-X trading platforms have significantly reduced costs and improved execution performance for investors in Europe and Canada, and we’re excited by the prospect of bringing the same benefits to investors in Japan,” said Ron Gould, CEO for Chi-X Asia-Pacific. “At the same time, both platforms have also helped to increase overall liquidity in their respective markets in part by bringing in new investors that didn’t previously participate, and we believe that the same will ultimately be true in Japan.”
Chi-X Global’s latest foray into Asia closely follows a joint venture with the Singapore Exchange to develop Chi-East, the first exchange-backed pan-Asian dark pool, announced in August. The company also operates Chi-X Canada and Chi-X Europe. Agency broker Instinet, a subsidiary of Japanese investment bank Nomura, owns 100% of Chi-X Global and is the majority shareholder in Chi-X Europe.