Instinet Extends Liquidity Aggregation Technology to Japan VWAP Crossing Platforms

Instinet Extends Liquidity Aggregation Technology to Japan VWAP Crossing Platforms

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 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

New Role for Buy Side in Corporate Bond Market: Liquidity Providers

New Role for Buy Side in Corporate Bond Market: Liquidity Providers

Full document at:-

New Role for Buy Side in Corporate Bond Market: Liquidity Providers?
With the shift in the corporate bond market from voice to electronic trading, and from capital facilitation by dealers to agency facilitation, will the largest institutional investors commit their own capital to replace that which has been withdrawn by dealers?
Corporate bond markets are being radically changed by a confluence of factors: new Basel III capital and liquidity rules, the MiFID requirements on transparency in bond markets, and the availability of innovative new platforms based on equity and FX market technology. These factors have already led to a reduction in capital commitment by dealers, even prior to the regulatory implementation of Basel III.

[Related: “In Search of Liquidity: The Transformation of the Corporate Bond Market”]

The shift from voice to electronic trading and from capital facilitation by dealers to agency facilitation are well established trends, but RFQ mechanisms are likely to continue to be necessary due to the clear differences between equities and FX on the one hand and most corporate bonds on the other. A key question is whether the largest institutional investors themselves might now choose to commit capital to replace that which has been withdrawn by dealers and to do this by making prices through order-driven and RFQ platforms. This would enable them to buy at the bid and sell at the offer, thereby taking out the spread. An increasing number of platforms are now All-to-All, thus enabling the buy side to act as capital providers.

For more on the technological innovation in and transformation of the corporate bond market, see Professor Scott-Quinn’s complete research paper, “European Corporate Bond Trading – the role of the buy side in pricing and liquidity provision,” below.

Institutional large-in-scale (LIS) crossing networks for bonds, such as Liquidnet provides for equities, and the use of reference pricing should enable investment institutions to transact with each other without broker-dealer, MDP or SDP intermediation. However, under recent draft proposals for MiFIR, European regulators have introduced a volume cap mechanism that may have a dramatic effect on dark trading in Europe – whether in equities or, in the future, in bonds. Regulatory control will be based on a (low) cap on the percentage of trading that can go through mechanisms using a reference price. This would seem to be only the most recent of a number of retrograde steps taken by the EU in terms of its implications for market liquidity.

The combination of Basel and EU regulation certainly has the potential to counter all the efforts of individual governments and the G30 to encourage corporations to raise finance for economic expansion through bond markets rather than through fragile banking systems in order to reduce systemic risk. At this stage it is too early to say if higher costs and reduced position taking by broker- dealers in response to regulatory change will result in higher funding costs for issuers of corporate bonds in Europe or if the innovations we discuss in the paper below may be able to offset at least some of these additional regulatory costs. Certainly at the moment, there is little sign on this side of the Atlantic that regulators are heeding the sentiment of SEC Commissioner Daniel Gallagher, who hoped that “the Commission … will understand the differences and interplay amongst the equities, debt and credit markets so that we can be a more sophisticated regulator of those markets.”

Professor Brian Scott-Quinn is Chairman and Director of Banking Programmes at the ICMA Centre, Henley Business School, and a former practitioner in the eurobond secondary market. Deyber Cano, a research assistant to Professor Scott-Quinn at the ICMA Centre, contributed to the paper.

Liquidity Finance opens US office

Liquidity Finance opens US office

Liquidity Finance expands to US and Latin America, appoints Dan Mullineaux and Robert McDonald to head team

Dan Mullineaux, Liquidity Finance, US

Dan Mullineaux, Liquidity Finance, US

“With a platform like this, and with their established presence in Europe, we felt that Liquidity Finance was best positioned to quickly become a significant player in the US.”

UK-based Liquidity Finance is expanding its activities across the Atlantic with a new office opening in Stamford, Connecticut in the US.

Headed by ex-Knight Capital Group and UBS AG Dan Mullineaux, working alongside ex-Head of EM Trading at Goldman Sachs, Robert McDonald, the expansion of Liquidity Finance to the US mirrors developments in the market, as clients are moving increasingly towards alternative sources of liquidity.

Liquidity Finance says it has received good traction and market shares in Europe, and will now be expanding its focus to the US and Latin American client base.

Liquidity co-founder Faisal Mian said: “The US market is a critical part of the Emerging Markets investor base and it is imperative for any serious bond trading operation to have deep roots there. In Dan and Bob, we are lucky to find seasoned professionals who have strong relationships and unquestionable integrity. This is the perfect nucleus around which we will build our North American team.”

Comments Mullineaux: “Experience has shown me that there is a place for both banks and agency trading firms through all parts of the market cycle. In addition, there is a clear trend towards anonymous price matching for block trades, further strengthened when the relationships and market experience of a strong team come into play. With a platform like this, and with their established presence in Europe, we felt that Liquidity Finance was best positioned to quickly become a significant player in the US.”

HKEx Announces Liquidity Providers for CES 120 Futures

Hong Kong Exchanges and Clearing Limited (HKEx) has registered the three Liquidity Providers (LPs) listed below for its planned CES China 120 Index (CES 120) futures, which will be the world’s first exchange-traded futures designed to provide convenient, cost efficient and simultaneous exposure

via Pocket June 24, 2013 at 07:26PM

CFN Services Announces TradingHUB Providing Global Access to Liquidity Venues with One Single Connection

CFN Services Announces TradingHUB Providing Global Access to Liquidity Venues with One Single Connection

Newswire | June 18, 2013 – 1:51pm

CFN Services, a leading provider of managed IT services to the financial services industry, announced the debut of TradingHUB, the company’s highly secure cloud connecting liquidity venues worldwide with one single connection. As a vital source of connectivity for leading, security-conscious financial services players, TradingHUB safely connects buy-side and sell-side firms to global liquidity, while providing access to the advanced trading, analytics and data services available on CFN’s Alpha Platform.

A single connection to any of the 50 global TradingHUBs deployed across the Alpha Platform enables clients to simply and affordably connect to key liquidity venues and trading partners across asset classes eliminating the need for expensive and complex market access networks, colocation and hardware. In markets with Alpha Platform Direct Connect (APDC), clients utilizing TradingHUB can leverage APDC’s low-latency direct market access and raw, full depth of book feeds from leading global exchanges. TradingHUB reinforces CFN’s reputation as an innovator in the evolving, financial markets for high performance automated trading solutions.

“We’re excited to introduce TradingHUB, providing clients a more secure, agile and affordable means of accessing to today’s financial markets. Through a single connection, TradingHUB opens the door to hundreds of financial markets, leading intermediaries and tier-one trading partners around the globe,” said Paul Edelmann, Senior Vice President, Professional Services, CFN Services.

This addition to the portfolio of Alpha Platform offerings demonstrates CFN’s commitment to client-driven innovation, security and high performance. Since last year, CFN has delivered Alpha Platform

On-Demand, the first, globally-distributed, high performance public cloud for the global financial markets; enabled market access over the fastest point-to-point wireless technology; and launched Alpha Platform Direct Connect, the company’s direct market access and market data platform.

“In addition to exchange colocation facilities, we are pleased to announce the expansion into Telx’s two facilities on their Clifton, N.J. data center campus, which offers a unique set of differentiated features for the capital markets. Effective today, with a single TradingHUB connection, clients can connect from any venue, to any venue quickly and reliably on the Alpha Platform,” added Edelmann.


NYSE program to boost liquidity of exchange-traded products

NEW YORK (Reuters) – NYSE Arca, a major U.S. market for exchange-traded products (ETPs), will launch an initiative this year to help issuers of some lightly-traded securities to boost their liquidity. The U.S.

via Pocket June 15, 2013 at 06:25PM

IIFM aims to standardize unrestricted wakala structures in Islamic interbank market

The lack of adequate liquidity management solutions is a key challenge that Islamic banks and financial institutions are facing today.

via Pocket June 04, 2013 at 07:06PM

CX2 limited open attracts early liquidity

The first week of limited trading on alternative venue operator Chi-X Canada’s second venue attracted liquidity in the ten stocks traded, while new electronic trading rules will have minimal impact on the market, according to Chi-X Canada CEO Dan Kessous. Speaking to theTRADEnews.

via Pocket May 15, 2013 at 06:55PM

Kepler deploys SunGard for UBS MTF access

First Published 29th April 2013

Kepler Capital Markets expands its use of SunGard’s Valdi solution for access to UBS MTF

Kepler Capital Markets, a European financial services firm, has expanded its use of SunGard’s Software-as-a-Service (SaaS)-based Valdi solution to add access to UBS MTF, the multilateral trading facility operated by UBS Limited.

Kepler already uses SunGard’s Valdi for access to numerous other trading venues, including BATS Chi-X Europe and other European stock exchanges. The firm expanded its use of Valdi as part of its plans to achieve agile growth through new market access.

“UBS MTF has a clear objective to provide high quality liquidity to UBS clients and UBS MTF members. Efficient and effective provision of access by SunGard helps give firms an easier way to go live and access the liquidity of UBS MTF.” -Richard Semark, CEO, UBS MTF

“SunGard’s Valdi smart order router and SaaS-based connectivity services help us achieve price improvements for our clients by helping us capture the liquidity available on existing and new trading venues. Valdi also helps us find liquidity that is unavailable to other brokers. In addition, it helps us lower our overall trading costs, creating savings that we can share with our clients.” -Thomas Biotteau, head of execution, Kepler Capital Markets

OPTIONS REPORT: ISE’s Gemini to Blend Maker-Taker with Pro-Rata

The International Securities Exchange will launch its ISE Gemini options exchange at the end of June, pending Securities and Exchange Commission approval.

via Pocket April 25, 2013 at 11:44PM

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