Instinet Japan Limited (IJL), agency brokerage subsidiary of Instinet Incorporated, has enhanced both of its ATS (alternative trading system) platforms in Japan JapanCrossing and CBX ASIA.
Instinet has added a second pre-open VWAP (Volume Weighted Average Price) cross to its JapanCrossing dark pool. The new 08:40 cross, which follows the existing 08:30 VWAP cross, matches buyers and sellers at the stocks primary market VWAP for the day. Reports on preliminary executions and residuals are sent to clients by 08:50, and market impact is mitigated as the trade is not printed until after VWAP has been determined by the Tokyo Stock Exchange at approximately 15:10.
Participants in the 08:30 cross also have the option to roll-over residuals or input new orders for the second cross. Additionally, Instinet has added support for iceberg orders in CBX ASIA, Instinets displayed liquidity pool for Japanese and Hong Kong equities.
In a low-volume market where large trades are even more difficult to execute, it has become imperative for clients to have the ability to source liquidity in alternative venues like JapanCrossing and CBX ASIA to help minimise market impact, says Nick McDonald, co-head of Equities, Asia-Pacific, Instinet. As an agency-only broker, we are driven solely by our commitment to helping clients achieve best execution, and we believe that these enhancements to our two platforms in Japan offer yet another means to that end.
L.D.