Too early to tell?
First Published Wednesday, 16th November 2011 02:26 pm from Fidessa : Steve Grob
The opinions expressed by this blogger and those providing comments are theirs alone, this does not reflect the opinion of Automated Trader or any employee thereof. Automated Trader is not responsible for the accuracy of any of the information supplied by this article.
href="http://fragmentation.fidessa.com/australia/"
target="_blank">dedicated Australia page on the Frag
website. Even if you're not directly interested in
antipodean fragmentation, Australia will provide a particularly
pure data set for what is fast becoming a global phenomenon. This
is because (right now at least) there is only one primary and one
alternative venue. It's too early to draw any
meaningful conclusions but, as the charts below show, Chi-X
Australia seems to have made a more positive start than its
counterpart in Japan. This is shown by the fact that Chi-X Japan
took almost six months to achieve the same share of trading
volume captured by Chi-X Australia in its first two weeks of
operation. Then again, Chi-X Japan faced a more complicated
clearing and settlement situation and had to contend with a short
selling ban, too.
href="http://fragmentation.fidessa.com/wp-content/uploads/Chi-Oz-volume-16-Nov.png">
class="aligncenter size-full wp-image-2976" title="Chi-Oz
(volume) 16 Nov"
src="http://fragmentation.fidessa.com/wp-content/uploads/Chi-Oz-volume-16-Nov.png"
alt="" width="600" height="305" />
href="http://fragmentation.fidessa.com/wp-content/uploads/Chi-X-JP-volume-16-Nov-111.png">
class="aligncenter size-full wp-image-2984" title="Chi-X JP
(volume) - 16 Nov 11"
src="http://fragmentation.fidessa.com/wp-content/uploads/Chi-X-JP-volume-16-Nov-111.png"
alt="" width="598" height="254" />
It's also interesting to note that title="ASX 200 Fragulated"
href="http://fragmentation.fidessa.com/fragulator/?fim=.XJO.AX"
target="_blank">average trade size for Chi-X
Australia is around one third of the market average. Is
this indicative of greater HFT activity? And, if so, will this
mean greater volumes for all concerned, or is it just more noise
for the buy-side to contend with (one of the great unintended
consequences of the pro-competition regulations in the US and
Europe)?
Whatever happens, Australia will take
its own path and I am sure that other alternative market
operators will be studying its progress with interest.
