UBS offers two crossing networks in Asia Pacific. UBS PIN – a proprietary non-displayed crossing capability that creates interaction for agency-only, like-minded investor flow, and UBS Cross – a complementary crossing network that is open to a wider cross-section of liquidity, providing greater choice and opportunities to interact with other non-displayed orders before trading in the displayed market.
Functionality and order types
UBS PIN and UBS
Cross both offer crossing at three price points – near, mid or far-touch (where
Access and participation
UBS PIN is offered to institutional agency clients.
UBS Cross is available to a wider spectrum of market participants allowing them
to interact with each other and with UBS liquidity. Both networks may be
accessed via UBS Algorithmic strategies.
UBS offers crossing in cash equity products traded
in Australia, Hong Kong and Japan. The universe of stocks available for
crossing is selected based upon criteria determined by UBS and is subject to
UBS deploys a number of mechanisms to protect its
clients from adverse selection.
These include: a dark throttle mechanism which prevents
crossing during volatile market conditions, or when the quote is unstable; a
minimum fill quantity mechanism (or minimum execution quantity) to control the
minimum size crossed in all dark venues; and a safeguard against an unevenly
set book – for example, when a very large offer meets a very small bid size,
algorithms will automatically pull orders back from the mid-tick and offer
crossing at a better price point, i.e. at best bid.
UBS has entered into a reciprocal access agreement
with Morgan Stanley to allow each firm’s algorithms access to their internal
crossing networks (MS Pool and UBS Cross only).
UBS will continue to enhance UBS PIN and UBS Cross to provide best execution to its clients.