SBI Japannext increases share in stalled market
Asian trading volumes largely stayed flat in July, according
to figures provided by Thomson Reuters, but the rise of proprietary trading
system (PTS) SBI Japannext in Japan suggests a winner may be emerging in the
region’s most competitive market.
Total equity market turnover for July was US$280.03 billion
in the country, down slightly from US$303.15 billion the previous month.
However, SBI Japannext increased its market share to 3.66% from 3.62% the
previous month, consolidating its position ahead of rival PTS Chi-X Japan,
which held 1.34%, down from 1.67% the previous month. A year ago, the two
platforms were neck and neck, with 2.08% and 2.05% market share respectively.
In May, SBI Japannext became the first PTS to break through
the 5% market share barrier, which it achieved on 18 May. Last month, the
Japanese Financial Services Authority said it would lift the tender offer bid
rule, which had been widely considered a major barrier to the growth of PTSs in
Outside Japan, Singapore’s volumes trended up over the last
month to US$15.67 billion from US$12.29 billion, and are now broadly in line
with the overall trend since the start of the year (US13.21 billion in
January). Korea also saw an uptick from US$106.42 billion to US$121.51 billion
in July although its volumes have declined through the year slightly more, from
US$149.82 billion in January.
Market turnover remained largely unchanged in Australia,
Hong Kong and India in July at US$72.46 billion, US$25.64 billion and US$45.70
billion respectively, compared with US$72.53 billion, US$26.37 billion and
US$43.87 billion respectively the previous month.
Asia’s dark order book volume did not increase significantly
over the period, rising slightly from US$3.13 billion in June to US$3.37
billion in July but remaining well below the US$ 4.54 billion reported in
March. In Japan, Instinet’s dark pool increased its turnover from US$313.12
million in June to US$365.38 billion in July, but this still represented less
than the US$381.86 million recorded for March.
Total Asia Pacific equity market turnover in July was
US$1.099 trillion, up only marginally from US$1.080 trillion in June. Japan
represented the region’s largest market, contributing 23.2% of Asia Pacific
market share. China’s Shanghai and Shenzhen exchanges were the nearest rivals,
contributing 18.2% and 17.6% respectively.