NYSE Technologies, the commercial technology unit of exchange group NYSE Euronext, has established a new FIX order routing link into China via Shanghai Stock Communications (STOCOM), a subsidiary of the Shanghai Stock Exchange (SSE).
The connection between SSE and NYSE Technologies' Marketplace FIX-based trading network gives exchange members and STOCOM clients direct electronic access to trading counterparties, while also providing non-Chinese institutions with the ability to extend their reach into the mainland.
NYSE Technologies Marketplace was acquired as part of NYSE Euronext's purchase of technology firm NYFIX in 2009. The network currently has over 1,200 trading counterparties connected via 10,000 FIX-based messaging channels.
“We can now provide our members with access to more than 1,200 buy-side and sell-side institutions and connections to exchanges and other electronic trade execution venues around the world,” said Lin Pei, vice general manager, STOCOM. “This new connectivity will help to differentiate our market participants from the competition while also benefiting QDII (Qualified Domestic Institutional Investors) and QFII (Qualified Foreign Institutional Investors) brokers to greatly reduce the cost and time to reach overseas markets.”
“This partnership further underscores our commitment to expand our points of connectivity to Asian markets and other key destinations around the world,” said Peter Tierney, managing director, Asia, NYSE Technologies.
To trade into or out of China, market participants are required to have a QFII and QDII licence respectively, which gives firms an investment quota as long as they fulfill specific regulatory criteria.