Alpha x, Société Générale's crossing network, has extended its operations to Asia, starting with stocks traded in Hong Kong. The network fully or partially matches clients' buy and sell orders on a particular stock through an integrated electronic platform which executes orders at mid-point of the primary market’s best bid and offer.
Société Générale says Alpha x can reduce implicit transaction costs by half and estimates that clients can achieve between 0.05% to 0.20% of price improvement depending on the stock. Any remaining orders are routed to the regulated exchange.
Institutional investors using Société Générale's electronic trading strategies, via sales trading, program trading or through the bank's Direct Strategy Access service, will be able to use Alpha x.
Alpha x in Asia is designed to protect investors' interests by using a completely anonymous system, guaranteeing confidentiality of orders. Through Société Générale Securities (HK), a member of the Hong Kong Exchange, the crossing network can offer institutional investors the opportunity to access a major source of alternative liquidity.
Alpha x has been available on all major European markets, excluding Spain, for more than a year. Its launch in Hong Kong is a first step in bringing the same alternative form of liquidity to Asia. Alpha x in Australia and Japan are expected to follow soon