Agency brokerage Instinet has added new functionality to its two Japanese crossing networks. Instinet Japan has added a second pre-open VWAP cross to its JapanCrossing dark pool and a new Iceberg order type to CBX ASIA, the firm’s displayed liquidity pool for Japanese and Hong Kong equities. ??
JapanCrossing’s new 08.40 cross, which follows the existing 08.30 VWAP cross, matches buyers and sellers at the stock’s primary market VWAP for the day. Reports on preliminary executions and residuals are sent to clients by 08.50. The trade is printed once VWAP is determined by the Tokyo Stock Exchange at approximately 15.10. Participants in the 08.30 cross also have the option to roll-over residuals or input new orders for the second cross. CBX ASIA is a real-time, displayed liquidity central limit order book with price/time priority.
“In a low-volume market where large trades are even more difficult to execute, it has become imperative for clients to have the ability to source liquidity in alternative venues like JapanCrossing and CBX ASIA to help minimise market impact,” said Nick McDonald, Co-Head of Equities, Asia-Pacific at Instinet.
CBX ASIA, JapanCrossing and KoreaCross, Instinet’s dark pool crossing platform for Korean equities, are available to both institutions and broker-dealers and are accessible through Instinet’s Newport 3 EMS, the Instinet Execution Experts suite of algorithms, directly via FIX or through multiple third-party OMS/EMS platforms.
In May 2009, JapanCrossing and CBX ASIA saw an average of 2.81% and 11.23%, respectively, of the Tokyo Stock Exchange’s total daily turnover flow through them, according to Instinet’s internal measurements.