Thomson Reuters launches data service in Asia

Thomson Reuters launches data service in Asia

http://www.efinancialnews.com/story/2013-09-23/thomson-reuters-launches-data-service-in-asia?mod=email_TradingTechnology

Information services giant Thomson Reuters has expanded its market data business in Asia Pacific, a sign that super-fast automated trading strategies are taking hold in the region.

The company said this morning it had launched its trading data service in the region’s main hubs of Hong Kong, Sydney and Singapore. The Elektron Real Time data feed consolidates and provides analysis on a range of pricing data from more than 400 exchanges and over-the-counter trading platforms globally. Banks, brokers and hedge funds use the data to make trading decisions.

Ralf Roth, global head of equities, feeds and platform at Thomson Reuters, said the launch of the Elektron Real Time feed in the region reflected growing demand among Asia Pacific trading participants for richer and faster data to power increasingly sophisticated automated trading strategies.

He added: “Today’s announcement shows how important the Asia Pacific region is becoming, and we also plan to expand this to India and Korea which are increasingly important markets for our clients.”

The service is already available in the developed market trading hubs of New York, Chicago, London, Frankfurt and Tokyo.

 

Electronic trading is growing in Asia Pacific as many US and European trading firms move into the region. Sophisticated high-speed trading strategies, such as high-frequency trading, now account for 27% and 50% of the Australia and Japan cash markets respectively, according to data from the Australian Securities and Investment Commission and the Bank of Japan. HFT is also prevalent in the region’s major futures markets of Korea and India, according to market participants.

Thomson Reuters has heavily invested in its trading data franchise in recent years and has re-engineered its distribution network to reduce the time or “latency” involved in communicating data from a trading platform to a trading firm. The company has also been at the forefront of sentiment analysis — the emerging phenomenon of sourcing information on the mood of the market by analysing hundreds of thousands of sources of public information, including social media data.

Roth said that as everyday market data becomes commoditised, firms like Thomson Reuters have to focus on enriching the data with this type of market insight and intelligence.

He said: “My vision is that in future we don’t think about data feeds but about information: data analysis in the future will be customised for clients. For example, if we could enable a client to set a trigger that if the sentiment in a certain stock reaches a certain level we give him an alert at which point he will make a trading decision- that is information, and I believe there is a large market for that. Clients are willing to pay for information that provides signals, sentiment and intelligence.”

 

–write to michelle.price@dowjones.com and follow on Twitter @michelleprice36

 

 

Instinet Extends Liquidity Aggregation Technology to Japan VWAP Crossing Platforms

Instinet Extends Liquidity Aggregation Technology to Japan VWAP Crossing Platforms

Click to access Instinet_Launches_Nighthawk_VWAP.pdf

HONG KONG – September 5, 2013 – Instinet Incorporated today announced the introduction of Nighthawk® VWAP, a fully customizable variant of its award-winning Nighthawk algorithm that provides aggregated access to the expanding universe of pre-market VWAP crosses in Japan.
Beginning with Instinet’s launch of JapanCrossingTM in 2001 and more recently with the introduction of similar pools in Japan, VWAP crossing platforms have provided an indispensable source of block liquidity through their anonymous, low market impact models. Including the two pre-market matches offered through JapanCrossing, there are now nine such crosses in the market. The VWAP module of Nighthawk, which executed over $3B (USD) of stock in Japan in Q2 2013, provides an efficient, intelligent way to get aggregated access to these crosses via a single destination.
Clients may send orders to Nighthawk VWAP from 00:00 JST onward. Beginning at 08:19 the algorithm begins cycling through the nine crosses, the last of which runs at 08:55. Matched orders receive an “indicative fill” at the stock’s previous night closing price, and are re-priced to the full day VWAP shortly after the market close at 15:00. During the month of August, clients saw a cross ratio (e.g., the percentage of total order volume completed) of 28% using Nighthawk VWAP.
“Nighthawk VWAP, like all of Instinet’s award-winning liquidity products and technology solutions, is driven by the needs of our clients. Nighthawk’s sophisticated liquidity aggregation gained popularity region-wide because it simplifies an important yet complicated process. We’re excited to extend its functionality to access these new venues,” said Joel Hurewitz, Head of Product Asia-Pacific Product Strategy.
Clients may access Instinet’s Nighthawk VWAP platform from Instinet’s Newport® EMS, through multiple third-party trading systems or via direct FIX connection.
Nighthawk VWAP is the latest Asia-Pacific-specific product to be launched by Instinet, which has seen a significant enhancement of its capabilities in the region over the past nine months. Since becoming the Nomura Group’s equities execution services arm in Hong Kong, Singapore and Australia, Instinet’s market share has increased to 3.1%, 2.9% and 1.7% in those markets, respectively*. Instinet clients are now able to pay for Nomura’s award-winning content in the region via Instinet, as well as leverage the Nomura Group’s entire AEJ equity trading network, which includes 57 sales/trading staff across nine offices**.
“Clients have responded extremely favorably to Instinet’s newly enhanced platform in the region, with the number of active trading accounts more than doubling from January to present,” said Shaun Bramham, CEO, Asia-Pacific. “By marrying Instinet’s electronic trading product set and agency-only liquidity with the content and capabilities of Nomura’s broker dealers, the Nomura Group is today able to provide an equities offering that is without peer.”
* Market share for Q2 2013
** Hong Kong, Singapore and Australia exchange memberships are held by Instinet broker dealers; India, Indonesia, Korea, Malaysia, Taiwan and Thailand exchange memberships are held by Nomura broker dealers.
About Instinet
As the equity execution services arm of the Nomura Group, Instinet Incorporated’s subsidiaries provide independent, agency-only brokerage services to clients throughout the world. Through its advanced suite of electronic trading tools, experienced high-touch trading group and unparalleled access to insightful content and unique agency-only liquidity, Instinet helps institutions lower overall trading costs and ultimately improve investment performance. Over the course of its 40+ year history, Instinet has introduced a range of now industry-standard trading technologies as well as the world’s first major electronic trading venue, one of the first U.S. ECNs and, most recently, the Chi-X businesses. For more information, please visit instinet.com or follow Instinet on Twitter.
Media Contacts
Mark Dowd
Global Head of Marketing and Communications Phone: +1-212-310-5331
Mobile: +1-201-376-9687
Email: mark.dowd@instinet.com

Derivatives top agenda for ASX chief (from efinancialnews.com)

http://www.efinancialnews.com/story/2013-08-22/asx-results-june-2013?omref=email_TopStories

Derivatives top agenda for ASX chief

Michelle Price in Hong Kong

22 Aug 2013

The chief executive of the Australian Securities Exchange has said the company will focus on expanding its derivatives business over the next 12 months, as regulatory efforts to overhaul the global swaps market gather pace in Asia Pacific.

During the exchange’s annual results presentation this morning, ASX managing director and chief executive Elmer Funke Kupper said derivatives is “the business where the vast majority of our energy is going in 2014”. The exchange is looking to exploit new rules that will see over-the-counter trades pushed onto exchanges and through clearing houses.

Funke Kupper added: “In 2014 we will be focusing on the implications of the international regulations…International regulations create new business opportunities and they affect our clients as regulators demand that some products that are presently traded OTC are cleared. We are investing in new services that we are bringing to market to help our clients.”

His comments came as the ASX reported net profits of A$348 million ($313 million) for the 12 months to June 30, up 3% on the year-ago period. Revenues came in at A$617 million, up 1.1% on the preceding period.

The first six months of the year acted as a drag on ASX’s full-year performance as subdued trading activity and increased competition in the cash equities market resulted in lower fees from trading and information services. Revenues across both businesses fell 8% for the 12 months to June 30 on the year-ago period.

 

These declines were offset by a strong performance in ASX’s listings, technical services, and the derivatives franchises, revenues for which grew 5%, 10% and 5% respectively in the 12 months to the end of June, compared with the previous year.

The ASX is one of several bourses in the Asia-Pacific region ̶ including the Japan Exchange Group and the Singapore Exchange ̶ making a play for the region’s $42.6 trillion OTC derivatives market. The company has been building out its OTC clearing house and in July it completed a A$553 million capital-raise that will bring ASX Clear in line with international standards on capital levels at OTC clearing houses.

Funke Kupper described the capital raise as the “most important” development for ASX during the past 12 months and added that the ASX’s new interest rate swap clearing service would begin to clear its first interdealer swaps in coming weeks. The launch of client clearing will take place during the latter half of the year.

The exchange expanded its listed futures business with the launch of new electricity futures contracts in May and is set to launch new volatility futures contracts based on the VIX index, also known as the “fear” index, in October. It is also expanding into collateral services to help meet growing client demand for liquid assets.

 

–write to michelle.price@dowjones.com and follow on Twitter @michelleprice36

Macquarie launches Hong Kong dark pool

Macquarie launches Hong Kong dark pool

http://www.thetradenews.com/news/Regions/Asia/Macquarie_launches_Hong_Kong_dark_pool.aspx

Macquarie Securities is opening a new Hong Kong dark pool this month.

After receiving its Type 7 license in July from Hong Kong’s regulator, the Securities and Futures Commission (SFC), Macquarie ran a pilot scheme with a select handful of accounts and is now offering the product to a wider range of clients.

The dark pool has been christened ‘MaX’, a diminutive of the term ‘Macquarie Crossing’.

The pool will prioritise agency-to-agency crossing. Within existing Hong Kong dark pools such a prioritisation had not been a requirement. In general, only professional investors bearing the SFC’s ‘Type A’ category are allowed to participate in ‘MaX’.

In addition, clients need to provide documented permission before their trades are allowed entry into ‘MaX’. In the past, trades might be placed into a dark pool simply under standard best execution arrangements.

It remains to be seen if the dark pools that have already been in operation in Hong Kong will need to adjust to the terms that have been applied uniformly to the new licensees and also to what extent the planned SFC consultation on the subject of dark pools may further impact the industry later this year.

Income Partners receives RQFII license from CSRC

Income Partners receives RQFII license from CSRC
Tue, 13/08/2013 – 16:15

Fixed income specialist Income Partners Asset Management (HK) Limited has been granted an RMB Qualified Foreign Institutional Investors (RQFII) asset management license from the China Securities Regulatory Commission (CSRC).

Income Partners has been an innovator in RMB and Asian fixed income investments. In 2010, Income Partners was one of the first asset managers to launch offshore CNH bond funds: the Income Partners Renminbi Investment Grade Fund and the Income Partners Renminbi High Yield Bond Fund.

Emil Nguy, managing partner and co-founder of Income Partners, says: “It has always been the firm’s goal to provide our clients and investors the broadest investment opportunity set, to fulfil their investment return requirements. We are delighted that the CSRC has granted us the opportunity to invest in the China onshore bond market. Our investment teams based in Beijing and Hong Kong have a strong long term track record investing in Chinese companies – this is a natural extension of the investment capabilities we can offer to our clients. Ultimately we believe the China onshore bond market will complete the Asian bond market story – the Chinese bond market is already the third largest in the world, with the current economic conditions, investors have the option of participating in the China growth story via both equities and bonds.”

Shen Tan, managing director and head of relationship management, says: “This is the reason why I joined Income Partners – this is a growing asset management company, and more importantly we are constantly innovating and investors will recognize the unique investment capabilities the firm has. We can provide investors a complete set of investment tools to access the Asian credit market, and our track record speaks for itself. We are confident we can replicate the strong performances our offshore CNH bond funds to our new RQFII bond fund.”

Singapore exchange to trade RMB shares

Singapore exchange to trade RMB shares

http://www.efinancialnews.com/story/2013-07-25/singapore-exchange-to-begin-trading-first-rmb-shares?omref=email_TradingTechnology

The Singapore Exchange will begin trading its first renminbi-denominated shares next month, in a boon for the Asian exchange which is looking to become an offshore hub for the Chinese currency.

The exchange said today that Yangzijiang Shipbuilding, China’s second-largest shipbuilder, will begin trading its shares in renminbi on August 5 on SGX‘s dual currency platform. Investors will continue to be able to trade Yangzijiang Shipbuilding, which listed on SGX’s main board in 2007, in Singapore dollars.

In a statement issued Thursday morning, Magnus Böcker, chief executive of SGX, said: “This is an exciting and positive development for Singapore as an offshore RMB centre. It also demonstrates how SGX is contributing to the infrastructure and capabilities required for issuers and investors to tap on opportunities offered by China.”

In the same statement, Ren Yuanlin, executive chairman of Yangzijiang, whose operations are largely based in China, said: “We always want our existing and potential investors to have more freedom and flexibility to buy our shares and with this dual currency trading, SGX has given the necessary platform needed for that.”

The SGX dual currency platform allows a listed security to be traded in two different currencies and for the shares to be consolidated within one settlement depository. The service, launched in March 2012, makes it more efficient for foreign investors wishing to trade a Singapore-listed stock by allowing them to do so in their local currency. SGX offers dual currency trading in Singapore dollars, US dollars, Hong Kong dollars, Australian dollars and renminbi for company listings and exchange-traded funds.

 

Yangzijiang Shipbuilding is the second company to begin trading on SGX in two currencies after container port business Hutchison Port Holdings Trust added Singapore dollars to its existing US dollar-denominated listing in March last year. Seven exchange-traded funds also trade on SGX in two currencies.

Today’s development is a boost for SGX which has aspirations to become an offshore hub for the renminbi after its attempt to merge with the Australian Securities Exchange was blocked by the Australian government in 2011. The bourse already offers investors access to China’s A-share market through index futures and began offering depository services for renminbi-denominated bonds in May.

SGX is the 10th largest of the 17 Asia-Pacific exchanges tracked by the World Federation of Exchanges when measured by domestic market capitalisation, at the end of June.

On Tuesday, the exchange reported a 43% rise in fourth-quarter net profit due to strong revenue growth in all its key businesses ̶ its best results since 2008.

 –write to michelle.price@dowjones.com and follow on Twitter @michelleprice36

 

Horizon Software introduces ETF market making and algo trading in China

Horizon Software introduces ETF market making and algo trading in China

http://www.atmonitor.co.uk/news/newsview.aspx?title=horizon-software-introduces-etf-market-making-and-algo-trading-in-china

 

Published on   Jul 17, 2013

Horizon Software, the provider of electronic trading solutions, has announced that a leading securities house in Shanghai has chosen Horizon Delta One Trader and Horizon Algo Trader as their ETF market making and algo trading solution in China.

Horizon Delta One Trader is a low latency order and execution management system dedicated to Delta One products. The solution implements trading strategies, such as statistical and index arbitrage, as well as making market for Delta One Products such as Futures, ETFs, CFDs, etc.

“We understand that China is a growing and evolving market and things are changing and moving rapidly on a daily basis. And we see a huge potential there. Horizon Software is always willing to understand our clients’ needs and in turn providing excellent solutions that can accommodate them.” said Jean-Marc Delfarguiel, CEO of Horizon Software.

“It’s challenging and the road ahead is not easy; but we believe our solutions are the best. Providing the first ETF market making system in China is a strong proof of our solutions within this space.” noted Sylvain Thieullent, APAC Director, Sales, Marketing and Client Services.

“Horizon Software is delighted to be chosen by our client in Shanghai. We are looking to further expand our footprint in China.” said Marco Chung, Head of Sales for North Asia. “And we are committed to provide the sophisticated electronic trading solutions for our clients in the region, be it market making, algo trading or order and execution management.”

BNP Paribas Cardif in joint Insurance venture with Bank of Beijing

BNP Paribas Cardif in joint Insurance venture with Bank of Beijing

http://www.automatedtrader.net/news/at/143746/bnp-paribas-cardif-in-joint-venture-with-bank-of-beijing

Paris/Beijing/Hong Kong – Paribas Cardifhas agreed to acquire the 50% stake held by ING Group in its life insurance joint venture with Bank of Beijing.

The new joint venture will be equally owned by the two shareholders, BNP Paribas Cardif and Bank of Beijing.

Eric Lombard, Chairman and Chief Executive Officer of BNP Paribas Cardif, said: “BNP Paribas Cardif generated 3.8 billion euros in gross written premiums in Asia in 2012, an increase of 25% over the previous year. We are delighted with this partnership with Bank of Beijing, which marks a major new stage in BNP Paribas Cardif’s international expansion.”

Xavier Guilmineau, Chief Executive Officer Asia, BNP Paribas Cardif, added: “Entering the Chinese market is a key step of our development. This fast-growing market offers numerous development opportunities in life insurance. The BNP Paribas Cardif’s expertise coupled with the quality of the Bank of Beijing brand will strengthen our position in this key region for our development.”

Eric Raynaud, Chief Executive Officer of BNP Paribas Asia Pacific highlighted: “This partnership is an important milestone of the Group’s development plan in Asia Pacific. China represents a key market for us where we provide clients with services in corporate and investment banking and wealth management activities through our 100% subsidiary BNP Paribas China Ltd. We have every good reason to believe that this partnership will be as successful as the ones we already enjoy since 2005 with Bank of Nanjing in retail and commercial banking and with Haitong Securities since 2003 through HFT Investment Management in asset management. “

Vietfund Management taps Deutsche Bank for custody, fund services

The Asset – Magazine-Vietfund Management taps Deutsche Bank for custody, fund services.

ASIFMA calls for bond market reform as China endures turbulence

http://www.thetradenews.com/news/Regions/Asia/ASIFMA_calls_for_bond_market_reform_as_China_endures_turbulence.aspx.