Nomura and Instinet Enter Liquidity Agreement for Hong Kong
Nomura, the global investment bank, has announced that it has entered into a liquidity agreement with agency brokerage Instinet and its non-displayed crossing network, NX (NomuraCross) in Hong Kong.
Nomura is now receiving orders from Instinet that are being entered directly into NX Hong Kong, providing clients access to more liquidity from each firm’s crossing networks.
Instinet is the first external broker to connect to NX Hong Kong. Robert Laible, Nomura’s Global Co-Head of Electronic Trading Sales and Head of Program Sales for Asia, said the reciprocal liquidity access agreement with Instinet is an important step in opening NX in Hong Kong to other sources of liquidity.
“This is the first time we’ve opened up NX Hong Kong to other sources of liquidity, which will increase the crossing rate and further the opportunity for price improvement for our clients,” Mr Laible said.
“I expect we will see further liquidity aggregation amongst brokers in Asia to meet the increasing needs of clients,” he added.
Instinet will connect to NX via its dark liquidity seeking algorithm, Nighthawk(R), whose logic is embedded in all strategies in the firm’s global Execution Experts(TM) algorithmic trading suite. Glenn Lesko, CEO of Instinet in Asia, said the addition of NX to Nighthawk’s 12 Asian destinations further cemented Instinet’s position as the leader in dark aggregation in the region.
“For years Instinet has helped the buyside navigate the North American and European markets as they fragmented,” Mr Lesko said. “In Asia, we’re putting our clients well ahead of the curve as the markets here become more complex.”
Nomura went live with NX in Hong Kong in June 2010, after launching in Japan and the U.S in late 2009. In January 2010, it established NX as the first principal broker dealer Multilateral Trading Facility (MTF) dark pool in Europe.
After NX crosses orders, it automatically reports the trades to the Hong Kong Stock Exchange (HKEx). By crossing orders in NX, clients benefit from both anonymity and price improvement. Orders placed in NX are not displayed externally or internally, allowing participants to place orders without revealing information, thereby minimizing market impact.