Singapore’s PhillipCapital and Japan’s SBI Group have teamed up to create a trade matching platform for the trading of US-listed equities in the Asian time zone.

A new joint-venture company will be created in Singapore in the second quarter of 2022 to develop and maintain the platform. It will have an initial capital of US$1 million with subsequent increment to US$6 million for full operations. PhillipCapital will own 70% of the venture, while SBI Group will hold the remaining 30%.

The company plans to apply for a recognised market operator licence from the Monetary Authority of Singapore.

PhillipCapital Group’s system development company, CQ TDT Asia in Vietnam, with the support of SBI Group, will develop the matching engine for the trading of US-listed equities during the Asian time zone. Over 100 US-listed stocks are expected to be tradable from 09:00 to 17:00 Singapore time. Singapore institutions and overseas institutions, overseas retails through brokers (subject to authorization of local authority) and liquidity providers will have access to the trading platform. SBI Securities, a member of the SBI Group, is in the process of considering connectivity to the trading platform, to meet growing demand from its Japanese clients.

The trading platform is expected to be fully operational by the first quarter of 2023, with trading volume expected to exceed US$100 million per day in the first year.

Hitoshi Shimoyama, Phillip Securities' executive director in charge of the project, is expected to be appointed chief executive officer of the joint venture.  “With this new platform, Asian investors do not need to wait till Asian midnight hours to trade US equities on the US exchanges. We do not need to wait next day morning to be informed whether clients’ orders have been executed. Asian investors will be able to place and execute orders in the day,” Shimoyama says.