Japannext PTS Nighttime Market Update

SBI Japannext Co., Ltd.

February 2012

© Copyright SBI Japannext Co., Ltd. 2012

1Nighttime Market Quick Facts•

MARKET HOURS– Nighttime Session (19:00 ~ 23:59)•MATCHING METHOD– Price Time Priority & Order Driven
Continuous Matching– 1/10th Tick Size of Primary Exchange(Same as our Daytime Market)•CONNECTIVITY (Orders)– FIX 4.2 (Standard FIX Compliant)– Drop Copy•

ORDER TYPES– Limit, IOC, FOK, and Iceberg•SYMBOLS– Approximately 3500 (Stocks listed on
TSE1,2, Mothers, OSE1,2, JQ )– Dropped Nagoya, Sapporo, and Fukuoka© Copyright SBI Japannext Co., Ltd. 2012•

MARKET DATA
– Thomson REUTERS RDFD IDN Select Feed (exchange code: JNX) Elektron (2Q12)– QUICK (exchange code: JNX)
– Bloomberg (exchange code: JE)– Direct market data via Native API•

COLOCATION– 1 Gig UTP or FIBER Connection– 100V or 200V (2.1KVA) Standard– In House Fiber Cross Connections– Half/Full Rack Configuration– TNS Pop (March 2012)•NIGHTTIME MARKET ACCESS– Same as daytime infrastructure– Point to nighttime FIX Gateways2

Nighttime Market Highlights•

SBI Securities’ 2.4 Million potential retail investors have access to thenighttime market.

•With good liquidity providers, the nighttime market can gain traction.
Media stories indicate that OSE’s nighttime derivatives market is growing,
and TOCOM is generating a significant portion of their trading volume
during the nighttime.

•Retail investors’ demand for nighttime trading has been significant. Oncethe nighttime market picks up, all major retail brokers will come onboard
with us due to competition.

•We will also run a series of promotional campaigns for nighttime trading
for the retail investors.

•Japannext PTS is the only venue open for nighttime trading, all otherPTSs terminated nighttime operations last year.

•

Institutional investors are paying close attention to the nighttime market.

•This year our target is to trade 1% of TSE’s volume during the nighttimemarket.

© Copyright SBI Japannext Co., Ltd. 20123

Nighttime Market Pricing
Standard Fee

0.4 bpsFee for DesignatedLiquidity Providers*

0.2 bps (1 Year Zero Commission)

Tick Size

Same as Daytime Tick Sizes (1/10th of Primary Exchange)

Market Hours

19:00 - 23:59 (JST)* Designated Liquidity Providers:
1.
2.
3.
4.

60% of the executions from posted orders
Provide liquidity for minimum 800 symbols
At least provide liquidity for one side within 800 symbols
Subject to review and revision based on observations on a quarterly basis© Copyright SBI Japannext Co., Ltd. 20124

Nighttime Market Statistics
Trade Date

Unique Order Symbols

Order Liquidity (JPY)

Traded Universe

Turnover (JPY)

01-Mar-11

2,718

213,108,370,363

267

523,362,322

02-Mar-11

2,708

37,374,900,881

278

498,493,556

03-Mar-11

2,711

45,348,237,252

331

853,631,517

04-Mar-11

2,704

48,319,478,493

243

422,704,353

07-Mar-11

2,688

42,780,074,108

283

583,748,295

08-Mar-11

2,699

41,084,652,458

246

499,780,088

09-Mar-11

2,676

29,623,429,110

247

300,147,830

10-Mar-11

2,688

42,967,011,456

333

707,846,041

11-Mar-11

1,782

16,379,631,750

508

2,385,968,709

30-Jan-12

878

3,812,340,641

40

138,005,780

31-Jan-12

813

1,383,170,727

41

49,519,270

01-Feb-12

787

1,571,458,395

5173,364,650

02-Feb-12

753

1,296,987,822

48

59,898,840

03-Feb-12

833

1,683,739,246

60

77,195,310

06-Feb-12

782

1,397,403,867

68

46,768,863© Copyright SBI Japannext Co., Ltd. 20125