Instinet Launches BlockMatch Asia

Instinet Pacific Ltd has launched BlockMatch Asia, an Alternative Liquidity Pool for the trading of non-displayed equities. BlockMatch Asia will go live with Hong Kong securities first before expanding to other Asia-Pacific markets, Instinet executives said. The trading platform is expected to save institutional traders as much as half of the bid-ask spread, which is wider in Asia than in other developed markets. Previously operated as CBX Hong Kong, BlockMatch Asia provides two distinct order books: a Limit Crossing Book and a Market-on-Close Book, Instinet said.  One of its main features is the addition of a Conditional Book for the submission and management of conditional orders, which better enable institutional buy-side firms to source block-sized liquidity by “resting” a large parent order while working the order elsewhere. The matching of conditional orders takes place within non-display mechanisms and users can manage risks of signaling and market impact, allowing for more efficient trading.