Tuesday October 4 2016

News Source: Global Exchanges

Focus: Other

Type: General




Chi-X Japan will launch a new venue, Kai-X, on October 17, 2016, having gained final regulatory approvals and registration with Japan’s Financial Services Agency (FSA).

Kai-X is a ‘Reference Price’ trading venue where investors can anonymously execute trades at prices equal to or better than those available on the Tokyo Stock Exchange (TSE).  Trading will be enabled at prices equal to the TSE ‘reference prices’ of: best bid or best offer as well as the derived mid-point between the TSE best bid and best offer prices. 

Kai-X is a broker-neutral trading venue where brokers can source liquidity on a level playing field.  To reduce any potential, or perceived, latency arbitrage opportunities and lower connectivity costs, Kai-X connectivity will be limited to the FIX protocol and there will be no colocation.

Kai-X will deliver institutional and retail traders their best execution requirements with price improvement, reduced market impact, efficiency and minimum trade size opportunities.   Japanese stocks outside the TOPIX100 are especially difficult and expensive to trade so the ability to anonymously rest an order in the middle of the bid and offer spread should be particularly advantageous to investors wanting to trade Japan’s smaller first section, second section and JASDAQ stocks.

Click on the link above for further details