Mizuho program trading (PT) operates a centralised pan-Asian program trading desk in Tokyo, offering agency, guaranteed and risk execution of Japanese equities, exchange-traded funds (ETFs) and futures. The firm provides a sales-trading service to its PT clients with market insights as well as consulting on ways to minimise execution costs. The desk can quote aggressive agency or risk pricing.
The firm actively market makes ETFs and sector indices, and takes on exchange for physical requests. It also supports ETF creations and redemptions upon request.
Mizuho PT actively seeks crossing opportunities
with other teams, notably with its sales trading desk. Utilising its
smart order router, the system will conduct active searches through
its dark pool, Mizuho Internal Crossing, as well as proprietary trading
system venues. PT flow will also have access to other flow types within
the crossing engine.
Mizuho’s online transaction cost analysis (TCA)
tool is available for both pre-trade and post-trade analysis for sales trading,
PT and electronic trading flow. For PT executions, it runs a detailed end of
day recap comparing the execution performance with various trading benchmarks.
The firm currently does not hold a dedicated transition
management desk but offers consulting on the best ways to minimise transaction
costs of the baskets over the course of the trading period.
As one of the major risk program trading houses in Japan, Mizuho quotes
competitive risk pricing for lunchtime principal baskets (so-called Kime
Mizuho is committed to strengthening its PT platform, aiming to further broaden its trading capabilities. The firm also plans to expand the PT services across Asian markets in the near future.