Chi-East Dark Pool Marks Test Case For Asia
November 11, 2010 by admin · Leave a Comment
The launch today of a pan-Asian independent dark pool represents an important test case for the region, according to market watchers, as European trading venues and broker-dealers look east for expansion opportunities.
Chi-East, a joint venture between Chi-X Global and the Singapore Stock Exchange, took the equities market by storm when it was unveiled in August 2009 as the first pan-Asian independent dark pool to be backed by a regional exchange.
Many overseas brokers including Instinet, ITG, Morgan Stanley, Credit Suisse, Citigroup and BNP Paribas, operate Asian crossing networks, or dark pools, in which they match up client order flow away from the public markets, but Chi-East is the first independent–or non-broker sponsored–alternative dark pool to go live in the region.
Chi-East is widely regarded as a landmark in the development of the Asian equities markets, which are experiencing their first wave of alternative liquidity and competition–a phenomenon that has already transformed both the U.S. and European markets.
