Instinet Records Significant Asian Liquidity Growth in 2011
Instinet Incorporated, a global leader in electronic trading and agency-only brokerage services, today announced that the alternative liquidity pools operated by its brokerage subsidiaries in the Asia-Pacific region experienced considerable growth in 2011. Instinet’s BLX Hong Kong grew 591%, CBX™ Hong Kong more than 350% and CBX Japan nearly 225% throughout the year(1).
“Given the current market environment, it’s clear that the overarching concern of most institutions trading the Asian markets is finding block liquidity without sacrificing benchmark performance,” said Glenn Lesko, CEO of Asia at Instinet. “The rapid growth of our off-exchange platforms in Asia-Pacific speaks in large part to the breadth of our offering, as our crossing platforms can help enhance performance relative to nearly all customer benchmarks.”
Instinet was a pioneer in the Asian crossing space with its 2003 launch of JapanCrossing™, the anonymous benchmark crossing platform that traded an average (USD) $75.35 million(2) per day in 2011.
According to Joel Hurewitz, Instinet’s Head of Product Strategy for Asia, strong client demand led to the creation and subsequent success of additional Instinet venues in Asia-Pacific.
“Institutions use venues like ours for many reasons, but with markets like we’ve had, anonymous crossing platforms with quality liquidity become increasingly attractive,” he said. “In addition, the growth of our pools throughout the region underscores the embrace of off-exchange trading that we’ve seen by Asian institutions generally.”
Lesko said the growth numbers reflect Instinet’s continuing market leadership in providing liquidity. “Access to liquidity that is attracted by our agency model makes our solutions that much more valuable,” he said. “We often speak about how we enhance liquidity through our advanced Nighthawk® aggregation technology, but the ability to interact with our agency liquidity is a key component of our value proposition as well.”
1 Growth defined as average daily consideration traded for January 2011 vs. December 2011.
2 1 JPY = 0.0128575 USD