Chi-X to launch new Japanese trading venue

The launch of the new platform is a bid to entice traders with better price offers than the Tokyo Stock Exchange.

Chi-X Japan will launch a new trading venue named Kai-X, in a bid to entice traders away from Japan’s main equities exchange.

According to a release from Chi-X, Kai-X is a ‘reference price’ trading venues allowing investors to anonymously execute trades at prices equal or better than those available on the Tokyo Stock Exchange (TSE).

Tony Mackay, CEO of Chi-X Japan, says in a statement that traders can also use ‘minimum execution quantity’ (MEQ) to execute larger blocks of stock than they are typically able to on the TSE.

“As the trading prices on Kai-X will reference TSE prices, Kai-X will not publish pre-trade bid or offer prices, quantities or indications of interest. This should deliver a number of advantages such as, limiting information leakage and facilitating the execution of large blocks which may be difficult to achieve on ‘lit’ markets due to a lack of depth in their order books,” Mackay says.

The new trading venue will be open to all local Japanese and overseas institutional and retail customers through their Japanese broker-dealers.