PTS IS AN ALTERNATIVE TRADING VENUE FOR JAPANESE EQUITY
PTS (Proprietary Trading System) is a licensed “market” under the Japanese law where exchange listed stocks are tradable in the same way as on exchanges through the member brokers. In other major advanced countries, a large amount of stock trading (15-50%) takes place outside the listing exchanges, while in Japan the majority takes place on listing exchanges, largely on TSE (Tokyo Stock Exchange).
Brokers are pursuing to execute their client orders with the best possible way in accordance with their policies, including the choice of market. Besides, markets such as TSE and PTS including Chi-X, on the other hand, are competing on the system, service, fees and etc. to provide the value to brokers and their clients.
PTS PROVIDES CHANCE FOR BETTER EXECUTION
Trading opportunities are different among markets as such it is the key for investors to be given the choice of market for their each order.
|Price||Different quotes might be displayed among markets even for the same stock; thus, investors might be able to trade at better price on Chi-X.|
|Faster/higher fill opportunity||Depth of order book and participants are different among markets; thus, investors might be able to achieve a faster and/or higher fill by routing orders to Chi-X.|