ITG and Instinet Sign Reciprocal Liquidity Agreement in Asia
Deal provides ITG clients with access to CBX™ Hong Kong and Instinet with clients access to POSIT® in Hong Kong and Australia
ITG, a leading agency broker and financial technology firm, and Instinet, a global leader in electronic trading and agency-only brokerage services, today announced a reciprocal liquidity access agreement that will allow each firm’s institutional clients to maximise liquidity opportunities in Asia-Pacific.
Joel Hurewitz, Instinet’s Head of Asia-Pacific Sales – Broker Dealer and Liquidity, said the deal was a further example of the firm’s global goal of helping clients seamlessly source liquidity. With Instinet recently having signed similar agreements in Asia with other major trading venue providers, Instinet clients can now access 11 alternative liquidity pools in Asia.
“We’ve been very aggressive in pursuing these kinds of linkages in Asia, as our goal is helping our clients get ahead of the fragmentation curve in Asia,” he said. “As a result, our clients are enjoying not only a significant increase in the amount of liquidity they can access, but also more interesting liquidity with which to interact in our pools.”
Michael Corcoran, ITG’s Head of Sales and Trading, Asia Pacific, said the deal reflects the evolving trading landscape and supports ITG’s focus on lowering trading costs for its clients.
“The Asia Pacific trading environment is changing irreversibly. Finding liquidity and reducing costs are top priorities as the markets become more complex. With the recent addition of Australian trading through POSIT Marketplace™ and more liquidity pools joining the platform on an ongoing basis, our clients can benefit from higher fill rates and lower costs,” he said. “Accessing multiple, quality venues from a single point is key to keeping trading costs down in a fragmented market and we’re pleased to add Instinet’s CBX dark pool to the panel of venues within POSIT Marketplace.”
Instinet 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 ITG’s POSIT pool in Hong Kong and Australia; ITG clients will access Instinet’s CBX Hong Kong through POSIT Marketplace.
Hurewitz added: “Nighthawk, whose logic is embedded in all of the strategies in our Execution Experts™ algorithmic suite, intelligently seeks hidden liquidity throughout the region. Since it dynamically re-allocates orders to venues in which execution quality is highest, it allows clients to much more effectively trade the rapidly fragmenting Asia-Pacific markets.”
“Liquidity aggregation is a trend that’s here to stay: it’s a vital component of Best Execution in the constantly changing global trading landscape. Using innovative technology, POSIT Marketplace makes the hunt for liquidity simpler, more efficient, and aims to reduce costs for fund managers and the investors whose money they’re managing,” added Corcoran.
Instinet 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.
Investment Technology Group, Inc (NYSE: ITG) is an independent agency research broker that partners with asset managers globally to improve performance throughout the investment process. A leader in electronic trading since launching the POSIT® crossing network in 1987, ITG takes a consultative approach in delivering the highest quality institutional liquidity, execution services, analytical tools, and proprietary research insights grounded in data. Asset managers rely on ITG's independence, experience, and intellectual capital to help mitigate risk, improve performance, and navigate increasingly complex markets. The firm is headquartered in New York with offices in North America, Europe, and the Asia Pacific region. For more information on ITG, please visit www.itg.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.
ITG Hong Kong Limited (ITGHK) is a participating organisation of the HKEx and is licensed by the SFC to provide dealing in securities and automated trading services (Licence Number AHD810). ITG Australia Limited (ACN 003 067 409) (ITGA) is a market participant of the ASX and is authorised to provide financial services (AFS Licence Number 219582). ITG Singapore Pte Limited (ITGS) is registered with the MAS and is authorised to deal in securities (CMS Licence Number 100138-1). ITGHK, ITGS and ITGA are subsidiaries of Investment Technology Group, Inc. (the ITG Group).
The Continuum Partners Ltd. for Instinet
Phone: +61-2-9449 8519
Mobile: +61-4-1621 9358
Mark Dowd, Global Marketing and Communications
ITG Asia Pacific
Phone: +852 2846 3567
Mobile: +852 6010 8170
ITG Corporate Communications