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Archive Post-trade Pre-trade Articles Sell-side Multi-Asset APAC

Optimising Access Into China

“One China Execution Platform”
The “One China Execution Platform” provides one stop execution, order management and trade confirmation and settlement facilities for the Chinese market. Clients can send (R)QFII and Connect orders to the same dealing desk, working the same strategies, but deploying different underlying logic that is suitable for onshore (R)QFII or offshore Connect trades. This enables CLSA to maximise execution capability while providing client service at a single broker level, as an alternative to the complexity and inefficiency faced by institutional investors when spreading trades across several brokerages or trading strategies.

(R)QFII stock and cash automated checking occurs offshore with CLSA before orders are sent to the market, and an additional safety check is conducted at the slice level as orders pass through the onshore stock verification stage to ensure operational integrity. Clients also receive the same post-trade booking services as when they trade with CLSA in other markets, including FIX confirmations when required.

CLSA and Citic Securities’ algorithmic trading suite for the China markets include algorithms that operate throughout the course of the day, at opening, closing and auction, at specified participation rates and also opportunistic and liquidity seeking algorithms.  The Float, FloatSniper and Dark algorithms have been removed from the China suite, with near touch style algorithms across all strategies disabled due to market regulations.

Recent market reports also indicate that the Chinese stock market regulator, the China Securities Regulatory Commission, may cooperate further with the Hong Kong regulator to implement an ID system for Stock Connect’s northbound trading in the first half of 2018. In this case, Connect trading may fall under the same regulatory supervision framework as (R)QFII with sensitive parameters such as order cancellation and order filling ratios being monitored, irrespective of which channel the client is trading through.  The “One China Execution Platform” pre-empts this as the functionality is in place today, providing a strong competitive advantage.

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