Asian trading volumes largely stayed flat in July, according to figures provided by Thomson Reuters, but the rise of proprietary trading system (PTS) SBI Japannext in Japan suggests a winner may be emerging in the region’s most competitive market.
Total equity market turnover for July was US$280.03 billion in the country, down slightly from US$303.15 billion the previous month. However, SBI Japannext increased its market share to 3.66% from 3.62% the previous month, consolidating its position ahead of rival PTS Chi-X Japan, which held 1.34%, down from 1.67% the previous month. A year ago, the two platforms were neck and neck, with 2.08% and 2.05% market share respectively.
In May, SBI Japannext became the first PTS to break through the 5% market share barrier, which it achieved on 18 May. Last month, the Japanese Financial Services Authority said it would lift the tender offer bid rule, which had been widely considered a major barrier to the growth of PTSs in the country.
Outside Japan, Singapore’s volumes trended up over the last month to US$15.67 billion from US$12.29 billion, and are now broadly in line with the overall trend since the start of the year (US13.21 billion in January). Korea also saw an uptick from US$106.42 billion to US$121.51 billion in July although its volumes have declined through the year slightly more, from US$149.82 billion in January.
Market turnover remained largely unchanged in Australia, Hong Kong and India in July at US$72.46 billion, US$25.64 billion and US$45.70 billion respectively, compared with US$72.53 billion, US$26.37 billion and US$43.87 billion respectively the previous month.
Asia’s dark order book volume did not increase significantly over the period, rising slightly from US$3.13 billion in June to US$3.37 billion in July but remaining well below the US$ 4.54 billion reported in March. In Japan, Instinet’s dark pool increased its turnover from US$313.12 million in June to US$365.38 billion in July, but this still represented less than the US$381.86 million recorded for March.
Total Asia Pacific equity market turnover in July was US$1.099 trillion, up only marginally from US$1.080 trillion in June. Japan represented the region’s largest market, contributing 23.2% of Asia Pacific market share. China’s Shanghai and Shenzhen exchanges were the nearest rivals, contributing 18.2% and 17.6% respectively.