Credit Suisse and Instinet, an agency broker and wholly-owned subsidiary of Nomura Holdings, yesterday announced a reciprocal agreement under which they will both provide their respective clients with access to each other’s dark liquidity pools in Japan – Credit Suisse’s CrossFinder and Instinet’s CBX for Japanese Securities – thereby increasing institutional clients’ opportunities to execute larger trades with minimal market impact.
"We are thrilled to offer our clients the opportunities that Instinet's CBX presents," states Olivier Thiriet, Credit Suisse's managing director and head of advanced execution services for Asia Pacific. "The combination of Credit Suisse's CrossFinder and Instinet's CBX will provide our clients with access to one of the largest dark liquidity pools for Japanese securities. We are confident that increased competition between exchanges, proprietary trading system (PTS) brokers and other venues will deliver improved execution performance and, ultimately, returns to our clients."
"Instinet has built its business on an unwavering dedication to client service, and we see openness as the next major strategic commitment that buyside clients are asking brokers to make," says Nicolas McDonald, head of Asian equities at Instinet. "As today's deal with Credit Suisse demonstrates, Instinet is completely committed to helping our buyside clients access dark liquidity as efficiently as possible - an approach that we believe leads to the greatest chance for best execution."
Today's agreement is the third between the two firms in the past year. In April, it was announced that Credit Suisse would route order flow to Chi-X, Instinet's new pan-European ATS/MTF, and late last year the firms announced a similar reciprocal linkage of their respective U.S. dark pools.