Asian dark pools offering lower costs for small, mid caps

Asian dark pools offering lower costs for small, mid caps: Trading costs for mid and small cap stocks much higher than those for large cap stocks across Asia-Pacific markets, increase the prices offered by the dark pool for smaller shares of the driver for use with fund managers, according to new data from the agency broker and financial technology provider in ITG.
Report of the ' Asia Pacific liquidity Barometer second quarter 2011 ' ITM, released for the first time, the distribution of the average of the trade deficit spending on market capitalization, which showed that a large cap trade costs in the first half of the 29 basis points (bps) ranged in Australia, bps in Hong Kong and Singapore, 34 bps in Korea and Japan, 47 bps in 56 bps in Taiwan.

However, in the middle-and small-CAP trading result in much higher absolute costs and wider ranges of costs between these markets. The average implementation cost deficit Mid-are 48 bps in Australia, 68 bps in Hong Kong, 63 52 bps bps in Singapore, Japan, 81 72 bps bps in Korea and in Taiwan. SM CAP figures are 61 bps in Australia, 58 bps in Hong Kong, 61 bps in Singapore, 80 bps in Japan, 101 bps in Korea and 89 bps in Taiwan.

In general the average failure is to trade in the first half of 2011 range from 36 bit/39 bps in Australia, Japan, 45 bps 49 bps in Singapore, Hong Kong, 58 bps Taiwan and South Korea.

"If we look at the crossings in the market, we see a significant amount of caps half acted in the dark. Part of the reason is because the lookups they tend to be higher than that of large ice caps, and is therefore much more significant advantage with his cross in a dark pool where you store half spread, "said Ofir Radiospire, head of research and consulting services, ITG Asia Pacific algo.

"More clients use alternative trading systems in Hong Kong and is therefore more volumes on them now." As a percentage of what happened at the Exchange we talk still low single-digit numbers, but growth in dark pool crossings is interesting enough that it will ignore the buy side firms. If you are running in the center of capital letters and small caps, put your savings at the middle point towards payment of the full dissemination on the market is bigger, "Radiospire."

Income data is positive Marketplace, ITG is a dark combination of service, application pool, showed that 54% of large-value transactions, market value "and the caps make up 41-5%. The relevant data for Hong Kong in the mid and small caps, for great is 59, 38, and 3%. POSITIVE Marketplace to connect eight large dark liquidity pools, Asia and the Pacific region. ' Positive Marketplace in the Asia-Pacific region, the number of Q2 was about three times a year, the date is 13 bits of trade improvements, the average price level of Q1.

"SET the market volumes will increase, even if the turnover of the market has generally been declining or stable in May/June for the main markets in Australia and Hong Kong, that the marketplace was that we are the STYLIST PULLED on HER higher number of customers in the Asia-Pacific region, and would have access to dark liquidity, part of the hunt for liquidity and price adjustment in the liquidity of the market in Asiina the global level," said Clare Rowsell, head of the "EDI.ITG.EXAMPLE.MICROSOFT.COM client relationship management and marketing. The Asia-Pacific region.

A complicating factor is that is a large, mid and small cap varied markets. In Australia, Hong Kong and Japan set a minimum threshold for ITG large caps at 10 billion United States dollars and small caps for 1 billion United States dollars and below. In Singapore, large caps more than 5 billion dollars during the small caps are up to 250 million United States dollars. In Korea the big caps more than 5 billion dollars during the small caps are less than 100 million dollars. In Taiwan, reviews of the upper and lower limits are United States $ 1.5 billion 100 million respectively, and.

Barometer of liquidity of the ITG also has to show that the six markets, which covers Singapore that decreased the most significant costs in the first half "in Singapore, we have changed some of the pressure, changes in the minimum size that affect spreads directly save Gefen.

The weighted average cost of the transaction the developed Asian Nations stood at 51 bps in June 2011, approximately 65 bps a year ago. "I'm looking forward to August of the transaction price will be higher due to the volatility. However, the scope of the current instability, it is not at the level of the global financial crisis, so that I would have expected to have more impact on the cost of as, say, pretty localized the consequences of the earthquake in Japan, but no Spike in trade costs at a level between the global financial crisis, "the vine said.