TOKYO, Oct. 23,
2023 /PRNewswire/ -- Tokyo Stock Exchange, Inc. (TSE)
and global Fintech leader, Broadridge Financial Solutions, Inc.
(NYSE:BR) are pleased to announce the launch of the direct
connection between CONNEQTOR, TSE's platform for trading exchange
traded funds (ETFs) and Xilix, Broadridge's execution management
system (EMS). This direct connection will enable asset management
companies, such as Sumitomo Mitsui DS Asset Management Co., Ltd.,
to use CONNEQTOR directly from Xilix, providing more advanced and
efficient processes.
"CONNEQTOR was developed as a platform to enable investors to
trade ETFs 'faster and better priced' and this launch of a
direct connection with Xilix, Broadridge's EMS, will allow
institutional investors to trade with even greater convenience,"
said Hiroki Kawai, Senior Executive
Officer, TSE. "We will continue our efforts to further
develop an even more highly convenient market environment that
enables smoother execution and better pricing for investors."
"We are thrilled to strengthen our partnership with Tokyo Stock
Exchange and jointly deliver our Xilix platform for trading ETFs
using CONNEQTOR," said Raymond
Tierney, President, Broadridge Trading and Connectivity
Solutions. "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."
Broadridge's EMS solution empowers firms to navigate these
challenges successfully by allowing Request For Quote (RFQ)
functionality that enables institutional investors who want to
trade a particular ETF at a particular quantity to send out a
request for a quote to a large number of market makers.
Xilix
Xilix is an intuitive and easy to use EMS
equipped with industry top class real-time compliance controls and
functions for global financial markets. It enables transactions in
a variety of asset classes through over 600 counter-parties
globally via a multilingual user interface, as well as Transaction
Cost Analysis and Smart Broker Allocation/Algo. Xilix is highly
valued by a wide range of customers, including some of the largest
firms in the industry, due to its high system reliability and
continuous improvements in customer service.
CONNEQTOR
CONNEQTOR is a RFQ platform launched by TSE
in February 2021 with the aim of
making ETFs faster and better priced in Japan. Through this platform, users can trade
ETFs flexibly and inexpensively by requesting simultaneous quotes
from market makers around the world, including specialized firms in
the U.S. 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. In August 2023, 53.8% of trades took place within
one minute of sending the RFQ1.
CONNEQTOR is being used by more than 180 institutional
investors, and its monthly trading value recently surpassed
200 billion yen. Needing only an
Internet environment, CONNEQTOR has eliminated issues that are
often obstacles in implementing a new system, such as by charging
no fees except for execution, thereby increasing user numbers,
especially among regional financial institutions introducing
electronic trading for the first time. However, as CONNEQTOR users
need to manually input orders on a designated screen, EMS users
have called for improvement.
With the launch of this direct connection with Xilix, order data
traders enter into Xilix can be sent directly to CONNEQTOR. Xilix
users can use CONNECTOR at no additional cost, enabling traders to
use their existing platforms to execute trades quickly and reliably
with market makers around the world on CONNEQTOR. This will lower
ETF trading costs and shorten the time required for trading, which
is expected to both enhance the sophistication of investment
management and operational efficiency at asset management firms and
other users.
Broadridge
Broadridge Financial Solutions
(NYSE: BR), a global Fintech leader with over $6
billion in revenues, provides the critical infrastructure that
powers investing, corporate governance, and communications to
enable better financial lives. We deliver technology-driven
solutions that drive business transformation for banks,
broker-dealers, asset and wealth managers and public companies.
Broadridge's infrastructure serves as a global communications hub
enabling corporate governance by linking thousands of public
companies and mutual funds to tens of millions of individual and
institutional investors around the world. Our technology and
operations platforms underpin the daily trading of more
than $10 trillion of equities, fixed income and other
securities globally. A certified Great Place to Work®,
Broadridge is part of the S&P 500® Index,
employing over 14,000 associates in 21 countries. For more
information about us, please visit broadridge.com.
1 Calculated from data on 640 transactions executed
in August 2023. The average time from
RFQ transmission to trade was 1 minute and 36 seconds.
CONTACT: Gregg Rosenberg,
gregg.rosenberg@broadridge.com
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SOURCE Broadridge Financial Solutions, Inc.