A diverse range of desks and products
contribute liquidity to the NX dark pool including cash and program trading, electronic
clients, delta one, derivatives and balance sheet management.
NX offers continuous crossing opportunities
at the bid and the ask as well as the traditional mid-point. Participants
contribute to the pool’s liquidity by posting orders directly into NX or via Nomura’s
trading algorithms, as well as touch and go orders via Nomura’s smart order router.
In addition, strategy level matching provides clients with a greater
opportunity to cross against orders working on overlapping time horizons. This
allows a significant uptick in crossing rates, as orders are filled on a
realised VWAP basis for the duration matched.
The dark pool covers Japan for continuous
and full day VWAP crossing and Hong Kong for continuous crossing.
NX incorporates sophisticated logic which
protects clients against adverse behaviour. This includes client configurable
initial and subsequent minimum fill size to ensure clients are protected
against any opportunistic pinging. The latency of the pool is also optimised to
prevent any latency arbitrage.
Participation in the dark pool includes
cash and program trading, electronic clients, delta one, derivatives and balance
sheet management, each of them having similar levels of participation.
Order types and matching logic
NX matches trades in Japan via ToSTNeT /
JNet, and in Hong Kong via Hong Kong Exchanges and Clearing. Supported order
types include passive and mid pegged orders: mid and passive pegging, touch and
go (IOC) orders via smart order routing, full day VWAP benchmark orders and
NX also aggregates liquidity from Instinet
CBX Japan, JapanCross and CBX HK, Chi- East, ASX CentrePoint, Chi-X Australia
hidden orders as well as multiple lit pools such as Chi-X Japan, and Australia and