Phillip Securities joins Tokyo Stock Exchange’s RFQ platform for ETFs

Rick Steves

TSE first announced the development of its RFQ platform for ETFs in May 2020, following the introduction of a Market Making Scheme for ETFs in 2018 with the aim of improving ETF liquidity.

Tokyo Stock Exchange (TSE) has announced that Phillip Securities Japan joined as a broker to provide connectivity to CONNEQTOR.

TSE launched the RFQ (Request For Quote) platform, CONNECTOR, in February of this year with the aim of improving liquidity in the ETF market.

Phillip Securities Japan have joined ten other liquidity providers in order to enhance the trading experience for institutional investors via CONNEQTOR.

The list of brokers includes Phillip Securities Japan, SMBC Nikko Securities, OKASAN Securities, Goldman Sachs Japan, JP Morgan Securities Japan, Daiwa Securities, Tokai Tokyo Securities, Nomura Securities, Phillip Securities Japan, Marusan Securities, Mizuho Securities, and Mitsubishi UFJ Morgan Stanley Securities.

Phillip Securities Japan is a subsidiary of Phillip Capital Group, a Singapore-based financial services provider with offices across Asia.

“With the aim of expanding our ETF business in the Japanese market, we are now looking to supplement our services to institutional investors by providing on top of our existing services for creation/redemption for ETFs on the TSE an ability to purchase ETFs off-screen via CONNEQTOR. We will accept orders for the entire range of ETFs listed on the TSE including bond ETFs and will also be able to take agency orders on behalf of investors over the phone”, the broker stated.

“With our company’s background in providing liquidity for markets in Singapore and other Asian markets we are also happy to provide in addition to the above services, advice for investing in Asian ETFs. We look forward to serving you as new broker on this platform”.

The exchange also announced that the cumulative trading value exceeded 10 billion yen at the end of June. With trading steadily increasing since then, the cumulative trading value has already exceeded 50 billion yen in August.

CONNEQTOR was launched with the goal of making ETF trading faster and cheaper. The RFQ platform is expected to continue its path of offering a convenient environment for securities companies and market makers to encourage more connections and provide an execution environment where investors can trade on better conditions.

TSE first announced the development of its RFQ platform for ETFs in May 2020, following the introduction of a Market Making Scheme for ETFs in 2018 with the aim of improving ETF liquidity.

TSE began considering the provision of an RFQ (request-for-quote) function in October 2019. Both initial and monthly fees are free, so that even institutional investors who trade less often such as banks and regional financial institutions can use the platform. TSE charges a trading fee (commission) to securities companies only when a transaction is executed.

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