Instinet, a global leader in electronic trading and agency-only brokerage, today announced that its Instinet Japan Limited subsidiary has added hidden and iceberg order types to CBX ASIA ™ in Japan, previously a fully displayed trading venue. The displayed order types already featured in CBX ASIA in Japan will interact with the new dark order types following a strict price-time priority, where lit liquidity is crossed before dark at a given price level in the book. The new order types are available through direct FIX connectivity, via third party provider and through the firm’s Nighthawk ® liquidity aggregation algorithm, which allows a single order to access multiple non-displayed trading venues and uses an array of sophisticated techniques to reduce adverse selection, signaling and potential gaming. Joel Hurewitz, Instinet’s Head of Asia-Pacific Sales – Broker Dealer and Liquidity, said client demand for a continuous platform that combines lit and dark liquidity prompted the move, with Instinet expecting to see an increase in overall liquidity and average trade size in CBX ASIA in the short term. “Eventually, clients will also have the ability to tag orders or portions of orders that they’d like to expose to buyside-only execution venues via Newport 3’s blotter interaction technology,” he added. To effect this change, orders matched in CBX ASIA in Japan will now be routed to stock’s primary listing market – either the Tokyo Stock Exchange (TSE) or Osaka Securities Exchange (OSE) – for execution. Executed TSE trades will be reported via ToSTNet and OSE trades via J-NET. Matched orders will not be confirmed trades until they are successfully reported, which can take up to two seconds. “As trades are matched, Instinet can optionally provide messaging back to client’s smart order router or algorithmic trading system indicating that an ‘approved cross’ from ToSTNeT or J-NET is forthcoming, which will allow automated trading systems to more efficiently manage their exposed orders. This effectively solves the multi-second latency issue of reporting off-exchange trades to ToSTNeT or J-NET while providing a high-speed continuous trading environment. From the client’s perspective, trading in CBX ASIA in Japan will be no different with the change, save for the new addition of dark liquidity,” said Hurewitz.
About InstinetInstinet Incorporated is an electronic trading pioneer, having established the world’s first major electronic trading venue in 1969, one of the first recognized U.S. ECNs in 1997 and the first pan-European MTF in 2007. Through its subsidiaries and affiliates, Instinet operates two distinct business lines: a global network of agency-only brokers that seek to help institutions lower overall trading costs and improve investment performance through the use of innovative electronic trading products, including smart-routing, algorithms, DMA, dark pools and EMS platforms, and also provide sales trading, commission management services and independent research; and the Chi-X ® Global businesses, which aim to improve the efficiency of capital markets globally by providing high-performance, low-cost alternative execution venues and the technology required to power them. Instinet is a wholly-owned subsidiary of Nomura Holdings, Inc. For more information, please visit www.instinet.com. ©2010, Instinet Incorporated and its subsidiaries. All rights reserved. INSTINET is a registered trademark in the United States and other countries throughout the world. Approved for distribution: in Australia by Instinet Australia Pty Limited (ACN: 131 253 686 AFSL No: 327834) which is regulated by the Australian Securities & Investments Commission; in Canada by Instinet Canada Limited, member IIROC/CIPF; in Europe by Instinet Europe Limited, which is authorized and regulated by the Financial Services Authority; in Hong Kong by Instinet Pacific Limited which is authorized and regulated by the Securities and Futures Commission of Hong Kong; in Japan by Instinet Japan Limited which is a Financial Instrument Dealer under the Financial Instrument and Exchange Law, registered with Kanto Local Financial Bureau (Registration No. 208) and is a member of Japan Securities Dealers Association (JSDA); in Singapore by Instinet Singapore Services Private Limited which is regulated by the Monetary Authority of Singapore, a trading member of The Singapore Exchange Securities Trading Private Limited and a clearing member of The Central Depository (Pte) Limited; to U.S. institutional clients by Instinet, LLC, member of SIPC.