Trading Atrium launched in Singapore

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singaporeA new Singapore-based company set up by a former trading technology executive has launched what it calls the first “trading atrium” in Asia offering multi-asset trading to proprietary firms and hedge funds.

Neo Partners Global (NPG) has taken a floor of a building in central Singapore offering trading rooms for traders of futures, equities and foreign exchange in what it calls a “broker neutral” platform.

The development is a sign that Singapore’s proprietary trading community is growing at a time when increasing numbers of large exchanges have sales offices in the city-state to tap into the trading community.

The office is mostly taken up with nine trading rooms with dealing desks equipped for a total of up to 52 traders. It has been outfitted with a 10 gigabit Ethernet backbone which Eric Neo, the company’s founder and chief executive, claims is larger in capacity than any existing arcade in Singapore.

“Traders can access a comprehensive range of academic trading programmes, algorithmic trading strategies, risk management consultancy, as well as legal and secretariat services under one roof,” he said.

Neo, a former executive at technology groups FlexTrade and RTS, also says his company offers an algorithmic code development service.

A few so-called “broker arcades” are already available in Singapore, where a community of proprietary trading firms has grown since the closure of the trading floor at Simex, the energy futures exchange that became part of SGX, the Singapore exchange, in 1999.

But Neo said they were limited in not allowing buyside traders to use the broking services of third parties.

Most prop traders in Singapore have hitherto been active in derivatives, and include Propex, an Australia-based firm, Flow Traders of the Netherlands and Grasshopper, a Singapore firm. For those that trade futures, one of the most popular trades is arbitraging between SGX’s Nikkei-225 futures contract and its original equivalent on the Osaka exchange, now part of Japan Exchange Group.

However trading was moving across all asset classes in Singapore said Neo, who also worked at UOBKiayHian, the metals and futures arm of Singapore’s United Overseas Bank.

“I used to deal with commodity trading firms which never thought to hedge their FX exposure. Now there’s a trend where commodity trading firms and equity fires are moving to multi-asset class trading,” Neo said. “There is now a trend of equity guys coming in [to Singapore], including from India and Thailand.”

At the same time exchanges have been setting up shop in Singapore, most recently TMX Group, the Canadian exchange operator, which opened an office in June headed by Darren Anthony.

ASX, the Australian exchange, is expected to open an office in Singapore this year as it seeks to tap growing regional demand from proprietary trading groups and Chinese brokers for derivatives.

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Reading Time: 2 minutes

A new Singapore-based company set up by a former trading technology executive has launched what it calls the first “trading atrium” in Asia offering multi-asset trading to proprietary firms and hedge funds.

Reading Time: 2 minutes

singaporeA new Singapore-based company set up by a former trading technology executive has launched what it calls the first “trading atrium” in Asia offering multi-asset trading to proprietary firms and hedge funds.

Neo Partners Global (NPG) has taken a floor of a building in central Singapore offering trading rooms for traders of futures, equities and foreign exchange in what it calls a “broker neutral” platform.

The development is a sign that Singapore’s proprietary trading community is growing at a time when increasing numbers of large exchanges have sales offices in the city-state to tap into the trading community.

The office is mostly taken up with nine trading rooms with dealing desks equipped for a total of up to 52 traders. It has been outfitted with a 10 gigabit Ethernet backbone which Eric Neo, the company’s founder and chief executive, claims is larger in capacity than any existing arcade in Singapore.

“Traders can access a comprehensive range of academic trading programmes, algorithmic trading strategies, risk management consultancy, as well as legal and secretariat services under one roof,” he said.

Neo, a former executive at technology groups FlexTrade and RTS, also says his company offers an algorithmic code development service.

A few so-called “broker arcades” are already available in Singapore, where a community of proprietary trading firms has grown since the closure of the trading floor at Simex, the energy futures exchange that became part of SGX, the Singapore exchange, in 1999.

But Neo said they were limited in not allowing buyside traders to use the broking services of third parties.

Most prop traders in Singapore have hitherto been active in derivatives, and include Propex, an Australia-based firm, Flow Traders of the Netherlands and Grasshopper, a Singapore firm. For those that trade futures, one of the most popular trades is arbitraging between SGX’s Nikkei-225 futures contract and its original equivalent on the Osaka exchange, now part of Japan Exchange Group.

However trading was moving across all asset classes in Singapore said Neo, who also worked at UOBKiayHian, the metals and futures arm of Singapore’s United Overseas Bank.

“I used to deal with commodity trading firms which never thought to hedge their FX exposure. Now there’s a trend where commodity trading firms and equity fires are moving to multi-asset class trading,” Neo said. “There is now a trend of equity guys coming in [to Singapore], including from India and Thailand.”

At the same time exchanges have been setting up shop in Singapore, most recently TMX Group, the Canadian exchange operator, which opened an office in June headed by Darren Anthony.

ASX, the Australian exchange, is expected to open an office in Singapore this year as it seeks to tap growing regional demand from proprietary trading groups and Chinese brokers for derivatives.

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