The Tokyo Stock Exchange signs MOU with Authentic Indication
The Tokyo Stock Exchange (TSE) has signed an MOU with Authentic Indication which works in improving the execution environment for block trades through provision of Indication-of-Interest (IOI) services.
By using the IOI platform provided by Authentic Indication, investors can research demand for block trades without disclosing their own demands to other market participants. When a counterparty is found, orders can be executed on the ToSTNeT market at the mid-price within the TSE auction market at that time. This approach minimizes market impact and preserves the confidentiality of the involved parties.
About Authentic Indication
Authentic Indication provides brokers with a system that enables IOI messaging for institutional traders via a secure, cloud-based platform. Hedge Fund and Asset Management trading teams submit encrypted IOIs directly to the platform, where the information is held in escrow until conditions specified by the submitter are satisfied. Thus there is zero risk of price impact or information leakage through brokers or market makers, and a superior average price is reached when successfully matched.
IOI submitters are connected on a bilateral basis, with simultaneous notification of both parties. Parties are directed to a broker for execution only if they bilaterally accept the notification.
Founded in 2022 by CEO Gordon Niamatali and CTO Jan Schiffman, the platform launched during the fourth quarter of 2023 for listed equity in Japan.
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