Kai-X

There is a growing demand among investors for trades without pre-trade transparency in order to minimize market impact, and a number of brokers provide solution by reporting the pair of buy and sell orders to ToSTNet for a TSE off-auction trade.

 

Kai-X aggregates such orders from various brokers and finds the other side of order. When Kai-X finds a match, it immediately sends an indication of the match to the corresponding broker and at the same time sends the orders to ToSTNet for TSE off-auction execution.

 

For the brokers using Kai-X, they can easily source additional liquidity from the other brokers without liquidity sharing arrangement. For those brokers wishing to save development/maintenance costs, Kai-X could be viewed as an outsourced facility.

Stock Universe

TSE-listed common stocks, ETFs and REITs (excluding foreign stocks and some foreign ETFs).

Trading Units

The same units used in TSE are applied.

Trading Rules

Kai-X is an intermediary service in which Chi-X Japan receives and matches orders from participants systematically. Orders are continuously matched, and after a match Kai-X notifies the respective participant with information necessary for the participant to report to ToSTNeT with minimal delay.
The following 3 price points are available for orders. Limit price can be set.

Service Hours

9:00~11:30, 12:30~15:00 (JST) on business days (same as TSE)

Tick Size

0.01 yen with the exception of those with Lot size of 1 and 10, of which the tick size is 1 yen and 0.1 yen.

Minimum Execution Quantity

If an order is specified to have a Minimum Quantity, matching of the order will only occur when there is another order with enough quantity on the opposite side to fulfill the MQ

Risk Control

The checks below are performed at order entry at Kai-X.

Size Limit Check Limit of maximum number of lots per order(set by participant)
Notional Limit Check Limit of maximum value per order(set by participant)

 

In addition, the following risk control functions are available on demand.

 

Cancel on Disconnect All open orders from a given session will be cancelled when the session disconnects.
Cancel on ToSTNeT Failure All open orders and matched orders pending ToSTNeT confirmation for a given participant will be cancelled if the participant’s ToSTNeT session disconnected, or if an order submitted to ToSTNeT timed out
Dropcopy Real-time copy of messages including order acknowledgements/trades are available for participants for their own risk management
Self Trade Prevention Orders tagged with the same identifier submitted by the same participant or the same end-client will not be matched
Kill Switch A participant can use this service to stop order submission on their FIX sessions and ToSTNeT session used in the Supplemental Service