Glenn Lesko, Instinet’s Asia CEO, expects to see more dark pools set up in Asia – by large regional banks, among others – and hence more tie-ups such as this one.
The buy-side trading platform expects to agree at least one alliance with a traditional exchange in Asia in 2012. Singapore's bourse is a likely contender, say traders.
Alternative trading venues are living up to their billing as good execution venues for less liquid stocks, according to figures from several platform providers.
The bank is offering Asian users of its crossing engine its advanced order protection system to soothe fears over high-frequency and proprietary flow.
Brokers have been asked to identify transactions that have been crossed from alternative trading systems onto Hong Kong's exchange, with a view to improving data transparency.
Richard Coulstock of Prudential AM predicts strong growth in electronic trading in Asia, with buy-side dealers taking greater control of their own trade execution.
The newly created post reflects the growing importance of transaction cost analytics to Asian fund management firms, says the agency broker.
Singapore Exchange may be improving its technology to increase trading speeds and liquidity, but it is aware that clearing and settlement remains an issue.
Research from the US-based dark pool provider shows a marked improvement in the performance of certain brokers' algorithms, following big investments in e-trading systems in Asia.
Takayuki Saito adds to the US bank's list of big hires in electronic trading, with a remit to expand the business under the Morgan Stanley MUFG Securities joint venture.
But Hong Kong still lacks competition in this arena, and Asia has some way to go on best execution, says Glenn Lesko, the agency broker's chief executive.
Average execution sizes on the trading platform in Asia rise to $1.3 million from $800,000-900,000 six months ago, as liquidity returns.
Posit Marketplace could make a big dent in local trading costs for the buy side if it follows the example in the US.
Ronald Arculli joins the ranks of those criticising alternative trading platforms for creating an unfair playing field.
Zach Tuckwell has joined from Deutsche Bank to head up the US firm's Asia-Pacific electronic trading business.
Liquidnet boss Seth Merrin is in Asia to garner support for the trading platform provider as competition for electronic trading venues emerges.