Chi-X Global Holdings, LLC

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Chi-X Global Inc.
Chi-XGlobal.jpg
Founded February 2008
Headquarters New York
Key People Fumiki Kondo, Chairman and Tal Cohen, CEO
Products Alternative Trading Venues
Website http://www.chi-x.asia/apac/sub_pages.asp?pid=9

Launched in February 2008 by Instinet, Chi-X Global is a global provider of trading venues. It is the parent company of several regional Chi-X electronic trading platforms around the world, including Chi-X Canada, Chi-X Japan and Chi-X Australia. Chi-X Global has also entered into two joint venture partnerships with existing exchange operators: the Singapore Exchange, to build and launch Chi-East, a pan-Asian dark pool, in Q4 2010, and BVMF to launch Chi-FX Brazil.

Chi-X Europe, which Instinet launched in 2007, is a separate, independent entity and is not part of the Chi-X Global group.

On September 28, 2010, The TRADE News reported that Instinet is seeking to bring on additional investors for Chi-X Global, similar to its strategy with Chi-X Europe in 2007[1]. This news closely followed Chi-X Global's announcement that it would replace CEO John Lowrey with Tal Cohen[2], and the news that Ron Gould, CEO for Chi-X Asia-Pacific, would leave the firm on October 15[3].

Key People

History

Chi-X Global announced in early June 2010 that it had teamed up with Brazilian exchange BM&FBOVESPA to create Chi-FX Brazil to serve the foreign exchange market in Brazil.[4] The joint venture requires Chi-X Global to develop and support the trading platform and BM&FBOVESPA to market the service and provide support to its customers. Chi-X Global Technology is the technology services unit of Chi-X Global and provides trading infrastructure and services to financial markets.

Chi-X Global announced July 6, 2010 that its Japanese subsidiary Chi-X Japan Limited would begin trading Japanese securities on its trading platform beginning July 29, 2010 after approval from Japan's Financial Services Agency (FSA).[5] Chi-X Japan now holds a proprietary trading system (PTS) licence from the FSA and will clear all its trades with the Japan Securities Clearing Corporation. Trading on Chi-X Japan will at first be confined to a few selected securities but will eventually widen to include all Nikkei 225 Index stocks.

On July 29, 2010, the exchange announced that trading commenced on five large liquidity stocks. The exchange targeted September for a milestone of trading approximately 800 stocks, or 95% of the first section of Tokyo Stock Exchange’s capitalization. The exchange also said in late July that more trading participants will be connected to the Chi-X Japan platform in a staged process over coming weeks.[6]

In early August 2010, Asia-Pacific head Ron Gould told the Financial Times that Chi-X Global, building on its Japan debut, expected to have a presence in five Asia-Pacific markets within a few years, and expected to launch a pan-Asian equity trading platform in mid-to-late September [7]

However, Ron Gould subsequently departed from the exchange, and when Tal Cohen became the new head of Chi-X Global in September 2010, he called a halt to the rapid expansion of the platform into Asia and said the group would evaluate the Korean market. [8]

Chi-X Europe has been helping the international trading community improve their execution of transactions. Its low cost model is designed to help trading participants achieve ultra-low execution and clearing and settlement costs and thus contribute to the efficiency of the overall market. Starting seven months ahead of the Markets in Financial Instruments Directive (MiFID) and eighteen months ahead of other MTFs.

In December 2011, BATS Global Markets completed its acquisition of Chi-X Europe, making BATS Chi-X Europe the largest pan-European securities market by market share. [9] According to BATS chief executive Joe Ratterman, "What this acquisition does is accelerate our plans globally and ... allows us to get to the next page in the playbook and start looking at asset class expansion." [10]


References

  1. Instinet Seeking New Investors for Chi-X Global. The TRADE News.
  2. Press Release: Chi-X Global Names Tal Cohen CEO. Instinet.
  3. Second Chi-X Head Set to Leave. The TRADE News.
  4. Chi-X Global and BM&FBOVESPA Team to Streamline International Trading into Brazil. BusinessWire.
  5. Chi-X Japan Receives Launch Approval. BusinessWire.
  6. Press Release. Chi-X Global.
  7. Chi-X bets on Asia equity trading demand. Financial Times.
  8. Chi-X reviews options for Asian expansion. The Financial Times.
  9. BATS GLOBAL MARKETS. Optiver.
  10. BATS buying Chi-X Europe, challenge national rivals. Reuters.
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