Chi-X Global and SGX to Launch First Exchange-Backed Dark Pool in Asia-Pacific

Non-displayed trading platform will start trading in first half of 2010 and technology will be developed by Chi-Tech.
By Greg MacSweeney
August 12, 2009

Chi-X Global (Chi-X) and Singapore Exchange Limited (SGX) plan to develop and launch the first exchange-backed dark pool in the Asia-Pacific region. The non-displayed trading platform aims to initially offer block crossing facilities for equities listed on SGX, and on an offshore basis for the Australia, Hong Kong and Japan exchanges. The goal is to start trading in the first half of 2010.

The joint venture, which will be equally owned between the two exchanges, intends to implement specific strategies to equip its dark pool with ample liquidity and attract new capital flows to the region. Chi-X subsidiary Chi-X Global Technology (Chi-Tech), a provider of trading infrastructure technology, will provide the technology for the platform. The dark pool will operate with appropriate regulatory approvals and controls, reporting, settlement systems and compliance standards.

"Chi-X is delighted to work with a forward-looking and market-focused partner like SGX to launch and operate this dark pool, with the aim of creating the deepest and most attractive dark pool liquidity in the Asia-Pacific region," said John Lowrey, CEO of Chi-X Global. "Our experience has shown that users are looking for independent, genuinely neutral dark pools with high functionality and deep liquidity, and we believe that this joint venture will be able to deliver just that."

"SGX is pleased to offer Asia the first exchange-backed dark pool, which will complement exchange trading by reducing the market impact of large trades," said Gan Seow Ann, SGX Senior Executive Vice President and Head of Markets. "We believe it will be an important block trading venue for Asian markets, attracting new participants and improving the trading environment in the region."

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