Tora Crosspoint is a non-displayed matching engine that offers clients access to Tora’s existing aggregate liquidity pool accounting for roughly 7% of total trading volume of the Tokyo Stock Exchange.
All of Tora’s clients are eligible for trading within Crosspoint. Matching rates vary from client to client depending on their order types and the names they trade but clients typically achieve matching rates of 10%.
Functionality and order types
Crosspoint supports all major order types including
pegged, limit, market and immediate or cancel and fill or kill orders.
Additionally, Crosspoint supports a continuous VWAP order type that can be used
in conjunction with VWAP algos to provide guaranteed VWAP. Orders are matched
on a time and price priority.
Access and participation
Crosspoint is open to users of Tora’s EMS Compass,
Tora’s algos, and Tora’s agency desk who are seeking to achieve price
improvement and reduced market impact. High-frequency trading and market making
flow is not permitted in the pool. The majority of the liquidity in Crosspoint
reaches the pool via Tora’s smart order routing technology that is integrated
into Tora’s EMS, algo, and agency offerings.
Crosspoint is focused on Japanese equities.
Tora conducts regular toxicity analysis on all
contra flow in the pool and offers clients the option to opt out of crossing
with counterparties whose toxicity exceeds a certain threshold. Tora supports
minimum acceptable quantities on a per-order basis. This reduces detection of
large orders from small contra-orders.
Tora has agreements in place with ten other broker
pools to offer clients a consolidated liquidity venue.