Instinet, a US based agency-only broker, and Tora, a electronic trading platform and liquidity provider for Asia, have reached a reciprocal liquidity access agreement, allowing Instinet Japan clients to access Tora Crosspoint and Tora clients to access Instinet CBX ASIA in Japan.
Instinet said that it clients will use the firm’s Nighthawk liquidity aggregation algorithm – which allows a single order to access multiple non-displayed trading venues and includes venue analysis and anti-gaming logic – to access Tora Crosspoint.
Tora’s smart order routing technology will connect to Instinet’s CBX ASIA in Japan.
The two companies also plan to extend the agreement beyond Japan to other Asian markets in which they operate liquidity pools over the coming months.
Instinet Asia-Pacific Broker Dealer and Liquidity sales head Joel Hurewitz said this type of deal was still uncommon in Asia but predicted they would become more prevalent as the Asian markets continue to fragment.