Chi-X Japan, a subsidiary of Chi-X Global, has received a proprietary trading system (PTS) license by the Japan Financial Services Agency (FSA). Trading on the Japanese equities platform is expected to commence from July 29, 2010.
Chi-X Japan will operate its market exclusively for the use of registered broker/dealer participants in Japan. All executed trades will be cleared through the Japan Securities Clearing Corporation (JSCC), which is expected to begin clearing for PTS markets from July 20.
According to the Chi-X Japan, it is scheduled to commence a launch period with a small group of participants and a limited number of large liquidity stocks. Trading will be expanded to include the entire group of Nikkei 225 names, plus other selected stocks, shortly thereafter, with further additions based on participants’ trading needs. Chi-X Japan will operate using a continuous matching model and maker/taker pricing that incentivizes liquidity providers.
Ron Gould, CEO for Chi-X Asia-Pacific, said: “The new Chi-X market center for Japanese equities will give us the opportunity to introduce important benefits to a wide range of participants and investors in Japan.
“With the important market changes already introduced with the Tokyo Stock Exchange’s launch of Arrowhead, investors in Japanese equities will now potentially have access to even faster trading performance, tighter spreads and reduced market impact as new liquidity is drawn into Japan.
“Our experience elsewhere has shown that the arrival of Chi-X has helped to increase overall liquidity, in part by bringing in new investors that didn’t previously participate. We think that the same will ultimately be true in Japan.”
Joseph Meyer, representative director for Chi-X Japan, said: “With Chi-X Japan and Arrowhead, Japan will offer one of the world’s most sophisticated investment environments. Many brokers have already signaled their intention to participate as soon as possible, and we are receiving tremendous interest from both major brokers and end-investors who intend to trade on Chi-X Japan through broker links.”
In addition, Chi-X Global, which is currently operating Chi-X Canada, is expected to launch Chi-East, the Chi-X Global / Singapore Exchange joint venture that will be the region’s new exchange-backed, non-displayed trading platform.