Integrated financial house PhillipCapital and Japan’s SBI Group will create a trade matching platform to allow trading of US-listed equities during Asian time zones.
With the platform, investors can trade over 100 US-listed stocks between 9am and 5pm Singapore time.
PhillipCapital’s system development company, CQ TDT Asia in Vietnam, together with the support of SBI Group, will develop the matching engine, reads a March 2 press release.
Both parties expect the trading platform to be fully operational by 1Q2023, with trading volume projected to exceed US$100 million per day in the first year.
According to PhillipCapital, Singapore institutions and overseas institutions, overseas retail investors through brokers (subject to local authorities) and liquidity providers will have access to the trading platform.
SBI Securities, a member of the SBI Group, is “in the process of considering connectivity to the trading platform”, to meet growing demand from its Japanese clients.
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A new joint venture (JV) company will be created in Singapore in the second quarter of 2022, with PhillipCapital owning 70% and SBI Group, 30%. Key personnel will be transferred from both entities.
The JV will start with an initial capital of US$1 million, which will grow to US$6 million for full operations.
Hitoshi Shimoyama, Phillip Securities’ executive director in charge of this project, says: “Both PhillipCapital Group and the SBI Group have observed the growing demand from Asian investors to trade US-listed equities during the Asian time zone.”
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Shimoyama is expected to be appointed as CEO of the JV. He adds: "With this new platform, Asian investors do not need to wait till Asian midnight hours to trade US equities on the US exchanges. We do not need to wait until morning the next day to be informed whether clients’ orders have been executed. Asian investors will be able to place and execute orders on the day.”
The company intends to apply for a Recognised Market Operator licence from the Monetary Authority of Singapore.
Luke Lim, managing director, Phillip Securities, says: “PhillipCapital Group has a strong working relationship with the SBI Group for more than 10 years, mostly but not limited to the securities business. It is a great pleasure to work together with the SBI Group on this new trading platform initiative.”
Yoshitaka Kitao, SBI Holdings’ representative director, president and CEO, says: “It is crucial for us to provide Japanese investors with the opportunity to trade US-listed equities in the daytime. We expect this new platform will enhance our customer experience and expand our securities business.”
Photo: Bloomberg
