Private Trading Systems: Japan's Proto-ECNs

April 5, 2001

Abstract

Boston, MA, USA  April 4, 2001

Electronic Private Trading  Systems in Japan   

Off-Exchange Trading Comes to Japan 

Recent months have seen the appearance of private trading systems, Japan's first off-exchange platforms for equities trading. Operated by securities firms, PTS systems seek to attract order flow by offering after-hours trading convenience to retail investors and execution advantages to institutional investors. In a new report entitled "Private Trading Systems: Japan's Proto-ECNs," Celent Communications presents an overview of both retail and institutional PTS systems, as well as the regulatory framework governing them, and assesses their long-term potential in Japan's equities market.

Japanese Private  Trading Systems

Retail Institutional
Goldman Sachs Moon Trade JBT BB Kabushiki Super Trade
Monex Nighter JapanCross Securities

 According to Neil Katkov of Celent, "Like other recent efforts to jump-start Japan's equities markets, PTS systems will generate only limited trading volume in the short to medium term. Nevertheless, we believe they will have a strong influence on market structure far exceeding their size. Like ECNs in the US, PTS systems have introduced the potential for new trading centers to arise in competition with the existing exchanges. In fact, PTS systems may well lead to the creation of a Nasdaq-like shared quotation and trading system competing directly for trade volume with Japan's listed and OTC markets."  

A Table of Contents

of Celent Communication's Institutional Securities & Investments research service can download the report electronically by clicking on the icon to the left.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

 

Boston, MA, USA, April 4, 2001

Private Trading Systems: Japan's Proto-ECNs

Return to report Abstract

EXECUTIVE SUMMARY 3
INTRODUCTION 4
MARKET OVERVIEW 5
  Proto-ECNs, or Proto-Exchanges? 7
PTS PROFILES 8
  INSTITUTIONAL PRIVATE TRADING SYSTEMS 8
  Japan Bond Trading 8
  JapanCross Securities 10
  RETAIL PRIVATE TRADING SYSTEMS 10
  Moon Trade 10
  Monex 12
FUTURE TRENDS 15
  Retail PTS Trends 15
  Institutional PTS Trends 17
  Competition with Existing Exchanges 18

 

        

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