Broadridge Financial Solutions and The Tokyo Stock Exchange (TSE) have initiated a direct connection between CONNEQTOR, TSE’s platform for trading exchange-traded funds (ETFs) and Xilix, Broadridge’s execution management system (EMS).
The direct connection will enable asset management companies to use CONNEQTOR directly from Xilix, providing more advanced and efficient processes.
Broadridge’s EMS solution has a request for quote (RFQ) functionality that enables institutional investors that want to trade a particular ETF at a particular quantity to send out a request-for-quote to a large number of market makers.
Xilix is an EMS equipped with functions for global financial markets. It enables transactions in a variety of asset classes through more than 600 global counterparties. It also houses transaction cost analysis and smart broker allocation.
Launched by the TSE in February 2021, CONNEQTOR is a RFQ platform designed to make ETFs better priced in Japan.
Through this platform, users can trade ETFs by requesting simultaneous quotes from global market makers, including specialised firms in the US market, and trading at the best price among the real-time prices quoted there to reduce transaction costs and improve operational efficiency for block orders.
Hiroki Kawai, senior executive officer at TSE, says: “CONNEQTOR was developed as a platform to enable investors to trade ETFs ‘faster and [at a better price]’ and this launch of a direct connection with Xilix, Broadridge’s EMS, will allow institutional investors to trade with even greater convenience.
“We will continue our efforts to further develop an even more highly convenient market environment that enables smoother execution and better pricing for investors.”
Raymond Tierney, president of Broadridge trading and connectivity solutions, comments:
“In today's complex global markets, businesses require solutions that enable automated workflow, capture growth opportunities, integrate seamlessly with internal and external systems, meet regulatory obligations and streamline operations and we will continue our efforts to solve the issues faced by institutional investors.”
