The Tokyo and Osaka exchanges have inched back market share from rival proprietary trading systems (PTS) in their first month of trading as the Japan Exchange (JPX), a combined exchange. Meantime, overall Asian equity volumes hit a 22-month high.
Market share data from Thomson Reuters showed that the Tokyo Stock Exchange (TSE) maintained its grasp on the market with 89.5% of market share in January – near identical to last month – trading US$446.4 billion. However, the Osaka Securities Exchanges (OSE) reaped 4.95% of market share with US$24.6 billion traded, a surge from 4.18% in December.
Overall, Japan experienced the highest month of volume traded since March 2011 with US$498.4 billion traded. This was mirrored throughout the region as equity trading volumes rose to US$1.7 trillion – also the highest month since March 2011.
January marked the first month the TSE and OSE have traded as JPX after last year’s US$1.6 billion merger. The new entity’s two cash-equity platforms will be merged by July and their derivative operations by March 2014.
Japan’s leading PTS, SBI Japannext, saw a drop off in the growth it enjoyed last month, as market share hit 3.25%, or US$16.1 billion, in Japanese equities. This was the lowest market share figures the PTS had posted since April, and a marked decline from last month’s 3.95%.
Chi-X Japan, the country’s second largest PTS by volume traded, also experienced a lull in January, with market share sinking to 2.22% with just over US$11 billion traded. In December the PTS garnered 2.60% of market share.
Further south, the Australian Stock Exchange (ASX) relinquished additional equities activity to the country’s first alternative exchange. Chi-X Australia, which celebrated its one-year anniversary in October, reached 11.01% of market share in S&P ASX 200 shares with A$7.4 billion traded, up from last month’s figures of 9.38% of market share and A$5.2 billion traded.
The ASX traded 88.4% of those shares in January with A$59.4 billion, down from 89.5% in December.