Global agency broker Instinet says its Nighthawk aggregation algorithm will be able to access liquidity from 14 dark pools across Asia by the end of the first quarter of 2011.
Since Instinet released Nighthawk in Asia last year, it has announced a number of liquidity-sharing agreements that provide its clients with access to TORA Crosspoint, ITG's POSIT, Nomura's NX and Credit Suisse's Crossfinder. Instinet was also one several brokers to have signed up to access the Chi-East regional dark pool, a joint venture launched last November by the Singapore Exchange and Chi-X Global, the exchange operator owned by Instinet.
But a series of new deals – several with global investment banks – means that Nighthawk will be able to access five dark pools in Hong Kong, six in Japan and three in Australia. However, for some of the deals, access is granted on a client-by-client basis.
Joel Hurewitz, head of sales – broker-dealer and liquidity, Asia, Instinet, said the firm was aiming to “take the lead in liquidity aggregation in Asia”, adding that the recent deals were the result of ongoing discussions with sell-side counterparts. “We’re looking to provide access to all dark pools in the region and while some operators simply won’t play ball, definite progress is being made toward improving client access to off-exchange liquidity,” he said. “We might still be in the early stages of dark pool development in Asia, but from our perspective liquidity-sharing agreements are a win-win.”