Chi-East Receives Regulatory Approval to Launch Independent, Pan-Asian, Non-Displayed Trading Venue
Announcement posted by ACN Newswire 04 Oct 2010
Singapore, Oct 4, 2010 - (ACN Newswire) - Chi-East, a joint venture of Chi-X(R) Global Inc. and Singapore Exchange Limited (SGX), announced today that it has obtained approval from the Monetary Authority of Singapore (MAS) to become a Recognised Market Operator (RMO). Trading is expected to begin in the fourth quarter of 2010.
Chi-East is an independent, non-displayed trading venue for select securities listed in Australia, Hong Kong, Japan and Singapore. Following its launch, Chi-East expects that participants trading on the platform will be able to provide their clients with better execution options, including reduced market impact, tighter spreads, low latency as well as cost-efficient clearing and settlement processes. As an independent liquidity aggregator, Chi-East will also allow sellside firms to access deeper liquidity by crossing their internalised trade flows with each other.
Ned Phillips, CEO of Chi-East, commented: "We are delighted that Chi-East has received regulatory approval to launch Asia's first exchange-backed, non-displayed trading venue in Singapore. By offering a cost-efficient execution venue combined with efficient clearing and settlement processes, Chi-East should deliver lower trading costs to both our clients and their end investors. We have already had tremendous support from our potential participants and we look forward to successfully growing this business."
Fumiki Kondo, Chairman of Chi-X Global, said: "Based on our experience in other markets, we expect the launch of Chi-East, as a pan-Asian platform, to complement existing marketplaces by supporting a more liquid trading environment in Asia. Over time, we believe this will attract new investors to the region."
Gan Seow Ann, Chairman of Chi-East and President of Singapore Exchange, said, "Chi-East will play a key role in enhancing the trading infrastructure in this region, thereby stimulating trade flows and deepening liquidity. Singapore Exchange is proud to be part of this innovative venture for our customers."
As an exchange-backed trading venue, Chi-East will maintain full post-trade price and volume transparency through public data providers such as Bloomberg, Thomson Reuters, Sungard and Fidessa. Chi-East, through LCH. Clearnet, will also support the first Central Counterparty Clearing (CCP) model in Asia. Japanese and Australian stocks will be cleared by LCH.Clearnet, Singapore securities will be settled through SGX's Central Depositary (CDP), while Hong Kong listed stocks will continue to be cleared under the local clearing infrastructure.
About Chi-East
Chi-East is an independent, non-displayed liquidity aggregator for the sell-side which supports the anonymous trading of selected Australian, Hong Kong, Japanese and Singaporean securities. It offers its clients a range of solutions for executing block transactions with price improvement, including mid-point pricing, low latency and, through LCH.Clearnet, cost-efficient clearing and settlement processes. Based in Singapore, Chi-East is a joint-venture between Chi-X Global and Singapore Exchange. For more information, please visit Chi-East website: www.chi-east.com
About Chi-X(R) Global
Chi-X Global Inc. is a global provider of market infrastructure technologies and trading venues that aims to provide investors around the world with the most efficient markets possible through its high-speed, low-cost, intelligent trading model. Chi-X Global believes that truly competitive, technology-driven markets benefit all participants in the trading process - investors, brokers and the primary exchanges - by making the market more attractive to the global trading community, which ultimately helps to increase overall market volumes and improve investor performance. Chi-X Global is a subsidiary of electronic trading pioneer Instinet Incorporated, a wholly-owned subsidiary of Nomura Holdings, Inc.
Chi-X Global operates Chi-X Canada, Chi-X Japan and the Chi-Tech technology product and services unit. Chi-X Europe is owned by a consortium of financial institutions and is operated independently. Chi- X Global's parent company, Instinet, is Chi-X Europe's largest and founding shareholder.
AboutSingapore Exchange (SGX)
Singapore Exchange (SGX) is among the world's largest exchanges and Asia's second largest listed exchange. As the Asian gateway, SGX is the market of choice for investors wanting to participate in Asia's vibrant and rapidly-growing economies, and for Asian issuers seeking international capital.
SGX's extensive suite of securities, derivatives and commodities products makes it Asia's most international exchange. SGX's services range from listings, trading, high-speed market access, clearing and settlement to depository services and Central Counter Party services for OTC traded derivatives. With the region's longest trading hours, and powered by cutting edge technology, SGX is the unparalleled conduit for investment flows into and out of Asia. For more information, please visit SGX website: www.sgx.com.
Contact:
Chi-East is an independent, non-displayed trading venue for select securities listed in Australia, Hong Kong, Japan and Singapore. Following its launch, Chi-East expects that participants trading on the platform will be able to provide their clients with better execution options, including reduced market impact, tighter spreads, low latency as well as cost-efficient clearing and settlement processes. As an independent liquidity aggregator, Chi-East will also allow sellside firms to access deeper liquidity by crossing their internalised trade flows with each other.
Ned Phillips, CEO of Chi-East, commented: "We are delighted that Chi-East has received regulatory approval to launch Asia's first exchange-backed, non-displayed trading venue in Singapore. By offering a cost-efficient execution venue combined with efficient clearing and settlement processes, Chi-East should deliver lower trading costs to both our clients and their end investors. We have already had tremendous support from our potential participants and we look forward to successfully growing this business."
Fumiki Kondo, Chairman of Chi-X Global, said: "Based on our experience in other markets, we expect the launch of Chi-East, as a pan-Asian platform, to complement existing marketplaces by supporting a more liquid trading environment in Asia. Over time, we believe this will attract new investors to the region."
Gan Seow Ann, Chairman of Chi-East and President of Singapore Exchange, said, "Chi-East will play a key role in enhancing the trading infrastructure in this region, thereby stimulating trade flows and deepening liquidity. Singapore Exchange is proud to be part of this innovative venture for our customers."
As an exchange-backed trading venue, Chi-East will maintain full post-trade price and volume transparency through public data providers such as Bloomberg, Thomson Reuters, Sungard and Fidessa. Chi-East, through LCH. Clearnet, will also support the first Central Counterparty Clearing (CCP) model in Asia. Japanese and Australian stocks will be cleared by LCH.Clearnet, Singapore securities will be settled through SGX's Central Depositary (CDP), while Hong Kong listed stocks will continue to be cleared under the local clearing infrastructure.
About Chi-East
Chi-East is an independent, non-displayed liquidity aggregator for the sell-side which supports the anonymous trading of selected Australian, Hong Kong, Japanese and Singaporean securities. It offers its clients a range of solutions for executing block transactions with price improvement, including mid-point pricing, low latency and, through LCH.Clearnet, cost-efficient clearing and settlement processes. Based in Singapore, Chi-East is a joint-venture between Chi-X Global and Singapore Exchange. For more information, please visit Chi-East website: www.chi-east.com
About Chi-X(R) Global
Chi-X Global Inc. is a global provider of market infrastructure technologies and trading venues that aims to provide investors around the world with the most efficient markets possible through its high-speed, low-cost, intelligent trading model. Chi-X Global believes that truly competitive, technology-driven markets benefit all participants in the trading process - investors, brokers and the primary exchanges - by making the market more attractive to the global trading community, which ultimately helps to increase overall market volumes and improve investor performance. Chi-X Global is a subsidiary of electronic trading pioneer Instinet Incorporated, a wholly-owned subsidiary of Nomura Holdings, Inc.
Chi-X Global operates Chi-X Canada, Chi-X Japan and the Chi-Tech technology product and services unit. Chi-X Europe is owned by a consortium of financial institutions and is operated independently. Chi- X Global's parent company, Instinet, is Chi-X Europe's largest and founding shareholder.
AboutSingapore Exchange (SGX)
Singapore Exchange (SGX) is among the world's largest exchanges and Asia's second largest listed exchange. As the Asian gateway, SGX is the market of choice for investors wanting to participate in Asia's vibrant and rapidly-growing economies, and for Asian issuers seeking international capital.
SGX's extensive suite of securities, derivatives and commodities products makes it Asia's most international exchange. SGX's services range from listings, trading, high-speed market access, clearing and settlement to depository services and Central Counter Party services for OTC traded derivatives. With the region's longest trading hours, and powered by cutting edge technology, SGX is the unparalleled conduit for investment flows into and out of Asia. For more information, please visit SGX website: www.sgx.com.
Contact:
Henry Chow College Hill for Chi-East Tel: +852 3791 2289 E-mail: henry.chow@collegehill.com.hk Matthew Schultz College Hill for Chi-East Tel: +852 3791 2032 E-mail: matthew.schultz@collegehill.com.hk