Difference between revisions of "Chi-X Global Holdings, LLC"

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{{Infobox_Company
 
{{Infobox_Company
 
| company_name =  Chi-X Global Inc.
 
| company_name =  Chi-X Global Inc.
 
| company_logo =  [[Image:Chi-XGlobal.jpg]]
 
| company_logo =  [[Image:Chi-XGlobal.jpg]]
| key_people =  Chairman Tony MacKay, CEO John Lowrey
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| key_people =  [[Fumiki Kondo]], Chairman and [[Tal Cohen]], CEO
 
| foundation =  February 2008
 
| foundation =  February 2008
 
| location =  New York   
 
| location =  New York   
| products =    
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| products = Alternative Trading Venues 
| homepage =  http://www.instinet.com/includes/index.jsp?thePage=/AboutInstinet/aboutInstinet.html
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| homepage =  http://www.chi-x.asia/apac/sub_pages.asp?pid=9}}
}}
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Chi-X Global is the parent company of several regional Chi-X [[electronic trading]] platforms around the world, including [[Chi-X Canada]] and [[Chi-X Japan]] as well as the proposed [[Chi-X Australia]] plus trading-technology provider [[Chi-X Global Technologies]]. Chi-X Global was launched in 2008 by parent company [[Instinet]] as a competitor to traditional trading venues like the [[NYSE]] and will launch the [[Chi-East]] with the [[Singapore Exchange]] later in 2010. [[Chi-X Europe]], by contrast, operates as a separate entity and is not part of the Chi-X Global group.
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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 Japan]] and [[Chi-X Australia]]. The [[alternative trading system]] (ATS) is majority-owned by [[Nomura]], and its minority shareholders include [[BofA Merrill Lynch]], [[JP Morgan Chase]], [[Goldman Sachs]], [[Morgan Stanley]] and [[UBS]].  
  
{{Infobox Midpage Need Sponsor}}
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About 18 percent of Canadian stock trading, almost 10 percent of Australian volume and 1.3 percent of trading of Japan’s Nikkei 225 Stock Average trade on Chi-X.<ref>{{cite web|url=http://www.bloomberg.com/news/articles/2015-05-06/chi-x-said-to-be-exploring-sale-valuing-company-at-400-million|name=Chi-X Said Exploring Sale Valuing Market at $400 Million|org=Bloomberg|date=May 7, 2015}}</ref>
  
==Backgound==
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On January 25, 2016, Chi-X Global announced it would be selling its Chi-X Australia, Chi-X Japan and Chi-Tech Hong Kong business units to [[JC Flowers]], a US private equity group, in a deal it expected to complete by the end of March. Chi-X Global had hoped to replicate [[Chi-X Europe]]’s success in taking market share from former monopoly exchanges, but as of January 2016 it had sold almost all of its assets, including its Canada business, which it sold to [[Nasdaq]] in December 2015.<ref>{{cite web|url=http://www.ft.com/cms/s/0/193006d6-c34d-11e5-808f-8231cd71622e.html#axzz3yHuYQXwo|name=Chi-X Global sells Asian units to JC Flowers|org=The Financial Times|date=January 25, 2016}}</ref>
  
Global [[agency brokerage]] group [[Instinet]] plus a minority-stake consortium of 13 investment banks started Chi-X Global in early February 2008 following the success of [[Chi-X Europe]] in the year since its launch in March 2007.<ref>{{cite web|url=http://www.reuters.com/article/idUSL0879153820080208|name=Instinet's Chi-X Global to challenge exchanges|org=Reuters|date=July 9, 2010}}</ref>Chi-X Global has since added [[Chi-X Canada]] and [[Chi-X Japan]] and plans to add [[Chi-X Australia]] to the group as well as a [[joint venture]] with the [[Singapore Exchange]]. The group provides [[multi-lateral trading platform]]s (MTFs) trading at higher speed and lower cost compared to traditional [[stock exchange]]s like [[NYSE Euronext]] and [[Deutsche Boerse]].
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[[Chi-X Europe]], which Instinet launched in 2007, is a separate, independent entity and is not part of the Chi-X Global group.
  
Chi-X Global also 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.<ref>{{cite web|url=http://www.marketwatch.com/story/chi-x-global-and-bmfbovespa-team-to-streamline-international-trading-into-brazil-2010-06-01|name=Chi-X Global and BM&FBOVESPA Team to Streamline International Trading into Brazil|org=BusinessWire|date=July 10, 2010}}</ref> 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.
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==Key People==
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*[[Fumiki Kondo]], Chairman
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*[[Tal Cohen]], CEO
  
==Key people==
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==History==
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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.<ref>{{cite web|url=http://www.marketwatch.com/story/chi-x-global-and-bmfbovespa-team-to-streamline-international-trading-into-brazil-2010-06-01|name=Chi-X Global and BM&FBOVESPA Team to Streamline International Trading into Brazil|org=BusinessWire|date=July 10, 2010}}</ref> 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 in March 2009 that former CEO [[Tony Mackay]] had been appointed Chairman while [[John Lowrey]] would succeed him as the group's new CEO.
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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).<ref>{{cite web|url=http://www.marketwatch.com/story/chi-x-japan-receives-launch-approval-2010-07-06?reflink=MW_news_stmp|name=Chi-X Japan Receives Launch Approval|org=BusinessWire|date=July 10, 2010}}</ref> 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.
  
==Latest news==
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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.<ref>{{cite web|url=http://www.exchange-handbook.co.uk/index.cfm?section=news&action=detail&id=91986|name=Press Release|org=Chi-X Global|date=July 30, 2010}}</ref>
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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 <ref>{{cite web|url=http://www.ft.com/cms/s/0/b1a34d4c-9d6f-11df-a37c-00144feab49a.html|name=Chi-X bets on Asia equity trading demand|org=Financial Times|date=August 3, 2010}}</ref>
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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. <ref>{{cite web|url=http://www.ft.com/cms/s/0/03eb4848-da42-11df-bdd7-00144feabdc0.html|name=Chi-X reviews options for Asian expansion|org=The Financial Times|date=October 18, 2010}}</ref>
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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<ref>{{cite web|url=http://www.thetradenews.com/asset-classes/equities/5126|name=Instinet Seeking New Investors for Chi-X Global|org=The TRADE News|date=September 28, 2010}}</ref>.
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In October 2011, the firm announced several new equity partners, including [[BofA Merrill Lynch]], [[GETCO]], [[Goldman Sachs]], [[Morgan Stanley]] and [[Quantlab Group]]. [[Instinet]], a [[Nomura Group]] company, remained the largest equity holder in Chi-X Global through a subsidiary company.<ref>{{cite web|url=http://www.chi-x.com/resources/global/file/Chi-X%20Global%20Announces%20New%20Equity%20Investors.pdf|name=Chi-X Global Announces New Equity Investors|org=Chi-X|date=May 7, 2015}}</ref> 
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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. <ref>{{cite web|url=http://www.optiver.com/corporate/our-business/investments-jvs/bats-global-markets|name=BATS GLOBAL MARKETS|org=Optiver |date=January 15, 2014}}</ref> 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." <ref>{{cite web|url=http://www.reuters.com/article/2011/02/18/us-chixeurope-bats-idUSTRE71H5K220110218|name=BATS buying Chi-X Europe, challenge national rivals|org=Reuters|date=January 15, 2014}}</ref>
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In May 2015, Nomura and its partners announced they are working with [[Moelis & Co.]] to sell Chi-X, and expect a valuation of about $440 million. Potential buyers include [[NASDAQ OMX]] and [[Singapore Exchange]].<ref>{{cite web|url=http://www.bloomberg.com/news/articles/2015-05-06/chi-x-said-to-be-exploring-sale-valuing-company-at-400-million|name=Chi-X Said Exploring Sale Valuing Market at $400 Million|org=Bloomberg|date=May 7, 2015}}</ref>
  
Chi-X Global announced July 6, 2010 that its Japanese subsidiary [[Chi-X Japan]] Ltd. would begin trading Japanese [[securities]] on its trading platform beginning July 29, 2010 after approval from Japan's Financial Services Agency (FSA).<ref>{{cite web|url=http://www.marketwatch.com/story/chi-x-japan-receives-launch-approval-2010-07-06?reflink=MW_news_stmp|name=Chi-X Japan Receives Launch Approval|org=BusinessWire|date=July 10, 2010}}</ref> 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. 
 
  
 
== References ==
 
== References ==
 
<references />
 
<references />
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[[Category:MarketsWiki Page of the Day]]
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[[Category:Trading Platforms]]

Latest revision as of 06:26, 6 March 2017

RCG Division of Marex Spectron-337x80.jpg
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 Japan and Chi-X Australia. The alternative trading system (ATS) is majority-owned by Nomura, and its minority shareholders include BofA Merrill Lynch, JP Morgan Chase, Goldman Sachs, Morgan Stanley and UBS.

About 18 percent of Canadian stock trading, almost 10 percent of Australian volume and 1.3 percent of trading of Japan’s Nikkei 225 Stock Average trade on Chi-X.[1]

On January 25, 2016, Chi-X Global announced it would be selling its Chi-X Australia, Chi-X Japan and Chi-Tech Hong Kong business units to JC Flowers, a US private equity group, in a deal it expected to complete by the end of March. Chi-X Global had hoped to replicate Chi-X Europe’s success in taking market share from former monopoly exchanges, but as of January 2016 it had sold almost all of its assets, including its Canada business, which it sold to Nasdaq in December 2015.[2]

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

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.[3] 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).[4] 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.[5]

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 [6]

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. [7]

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[8].

In October 2011, the firm announced several new equity partners, including BofA Merrill Lynch, GETCO, Goldman Sachs, Morgan Stanley and Quantlab Group. Instinet, a Nomura Group company, remained the largest equity holder in Chi-X Global through a subsidiary company.[9]

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. [10] 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." [11]

In May 2015, Nomura and its partners announced they are working with Moelis & Co. to sell Chi-X, and expect a valuation of about $440 million. Potential buyers include NASDAQ OMX and Singapore Exchange.[12]


References

  1. Chi-X Said Exploring Sale Valuing Market at $400 Million. Bloomberg.
  2. Chi-X Global sells Asian units to JC Flowers. The Financial Times.
  3. Chi-X Global and BM&FBOVESPA Team to Streamline International Trading into Brazil. BusinessWire.
  4. Chi-X Japan Receives Launch Approval. BusinessWire.
  5. Press Release. Chi-X Global.
  6. Chi-X bets on Asia equity trading demand. Financial Times.
  7. Chi-X reviews options for Asian expansion. The Financial Times.
  8. Instinet Seeking New Investors for Chi-X Global. The TRADE News.
  9. Chi-X Global Announces New Equity Investors. Chi-X.
  10. BATS GLOBAL MARKETS. Optiver.
  11. BATS buying Chi-X Europe, challenge national rivals. Reuters.
  12. Chi-X Said Exploring Sale Valuing Market at $400 Million. Bloomberg.