The transaction took place on August 19, and according to Brook Teeter, head of AES sales for Asia-Pacific at Credit Suisse: "We [Credit Suisse] were the first foreign broker to execute a DMA trade in Indonesia via our AES platform and the number of customers using Credit Suisse for direct market trading in Indonesia is already growing."
He adds: ôFor many investors, DMA is the first step towards deploying more sophisticated electronic trading tools which can help them achieve best execution through the use of custom algorithmic strategies and by accessing alternative ædarkÆ pools of liquidity."
"We are very excited to add Indonesia to our growing list of electronic markets in Asia,ö said Teeter. ôIndonesia is a challenging market to trade with large spreads and low volumes. As an efficiency tool we are expecting our clients to take greater control of their orders and feel comfortable in the anonymity DMA affords them."
DMA offers clients a range of potential advantages over traditional brokerage, giving clients the ability to trade equities and futures directly into exchanges without any of the delays associated with routing orders to a sales trader or dealer. It combines speed of execution, anonymity in the market, the ability to react quickly to other flows and to self-manage limit orders in the market. DMA and AES can be accessed through over 60 order management systems.
AES, a proprietary name for the bankÆs DMA business, continues to expand the suite of products available to clients, and now has access to 27 pools of liquidity in the region.
Furthermore, Teeter points out: ôTechnology is no longer seen as a hindrance in rolling out electronic trading as most investors have or are in the process of putting in place the appropriate systems.ö
The implementation of electronic trading is relatively new in emerging markets. However, it provokes little if any comment in the more established markets where it has been in place for years. In Asia, the most active markets for all AES products are Japan, Hong Kong, Australia and Korea.
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