Dark pool gets green light

Chris Howells

christopherh@mediacorp.com.sg

Chi-East said it had already seen strong interest from major investment banks and local brokers for the platform.

Trading is expected to begin in the fourth quarter.

Dark pools are trading venues that do not display quotes publicly, helping investors minimise price fluctuations and save costs.

They are relatively new in Asia, although they are widely used in the United States and Europe.

In Europe, 5 to 8 per cent of trading by large investors takes place on such off-market platforms.

Mr Ned Phillips, chief executive of Chi-East, said its goal would be to become a major player in Asia by capturing liquidity in the alternative trading space.

“Our major clients will be the major investment banks … We’re also able to grow it with some of the local brokers, some of the specialist brokers and also the proprietary trading firms,” he said.

Chi-East supports anonymous trading of selected Australian, Hong Kong, Singaporean and Japanese equities.

The company said it would likely see stronger take-up for its trading venue from Japan where alternative venues have been present for the last nine years.

The take-up in the rest of the region, however, is likely to be slower as regulations and awareness take time to grow.

Dark pools are also expected to attract more liquidity to local markets in Asia, analysts said.

“If the dark pool isn’t there, then the volume wouldn’t be there for that particular type of trade because it’s actually specific to a very specialised type of investment crowd,” said Mr Wong Sui Jau, general manager of unit trusts distributor

Meanwhile, the SGX said yesterday that the benchmark Straits Times Index would now be delivered using new streaming technology.

This will allow investors and traders to get sub-second updates any time the price of the underlying constituents change, as opposed to the current 15 second intervals. They can then make quicker trading decisions and respond faster to market conditions.

Separately, the SGX said total market turnover for last month grew to $38 billion, up 20 per cent from $31.6 billion in August.SINGAPORE — Chi-East, the joint venture between Chi-X Global and the Singapore Exchange (SGX), has received regulatory approval from the Monetary Authority of Singapore (MAS) to operate a dark pool trading platform.Fundsupermart.com.

This make some of my friends very rich - they bought at its lowest , $6 plus

I am one step behind..

niuyear      ( Date: 28-Sep-2010 11:57) Posted: iPunter!!!!! i lilke these pictures..    iPunter      ( Date: 28-Sep-2010 10:52) Posted:

Congrates on your foresight.  You are rich.

iPunter!!!!!

i lilke these pictures.. 

iPunter      ( Date: 28-Sep-2010 10:52) Posted:

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niuyear      ( Date: 28-Sep-2010 09:48) Posted:   I copy cat from someone.  .............