Domestic bourses reclaim market share in Japan, Australia

Domestic exchanges clawed back equity market share from alternative venues in Japan and Australia last month, as China experienced a significant decline in overall volumes.

Domestic exchanges clawed back equity market share from alternative venues in Japan and Australia last month, as China experienced a significant decline in overall volumes. 

The Japan Exchange (JPX) – a conglomeration of the Tokyo and Osaka stock exchanges formed after last year’s merger – grew its market share at the expense of alternative venues SBI Japannext and Chi-X Japan in February.

JPX recorded 94.91% of market share with US$494.5 billion traded, up from 94.52% in January, according to data from Thomson Reuters Equity Market Share Reporter.

SBI Japannext slipped to 3.0% of market share with US$15.6 billion traded in February, down from 3.24% in January. Chi-X Japan fared similarly in February, dropping to 2.06% market share with US$10.7 billion traded, from 2.22% in January.

February was a record month for Chi-X Japan in terms of turnover, with over ¥1 trillion traded. The propreitary trading system also set a new daily record on 5 March, with more than ¥80 billion traded, according its own figures.

A similar market share shift occurred in Australia, with the Australian Stock Exchange growing its market share to 85.78% in February with A$59.6 billion traded, from 85.97% in January, according to the Reuters data. Chi-X Australia traded 12.99% worth of Australian equities in February with A$9.02 billion traded, just off January’s 13.02% figure.

In China, a marked reduction in equity trading volumes saw Shanghai steal market share from Shenzhen, likely due to a reduction in trading days caused by the recent Chinese New Year. Overall trading slumped to US$540.1 billion in February, from US$756.7 billion in January.

Shanghai grew monthly market share to 50.51% with US$268 billion traded, from 49.12% in January, while Shenzhen hit 42.38% in February from 43.89% in January.

Other notable market share shifts in Asia for February included India’s National Stock Exchange (NSE) continuing a four-month surge in market share at the expense of the Bombay Stock Exchange. A trend which began in November continued in February as the NSE grew its market share to 84.36% with US$42.09 billion traded, from 83.95% in January. The Bombay bourse dropped to 15.64% in February with US$7.8 billion traded, from 16.05% in January and 17.58% in November.

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