Chi-X Global Holdings, LLC
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| Chi-X Global Inc. | |
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| 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 Asia Pacific (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[edit]
- Fumiki Kondo, Chairman
- Tal Cohen, CEO
History[edit]
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 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, 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 was 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 were working with Moelis & Co. to sell Chi-X, and expected a valuation of about $440 million. Potential buyers included NASDAQ OMX and Singapore Exchange.[12]
J.C. Flowers acquired 100% of Chi-X Global (excluding Canada) in February 2016 and established Chi-X Asia Pacific. At the time, Chi-X Asia Pacific consisted of Chi-X Japan, the first and only broker-neutral equity proprietary trading system in Japan; Chi-X Australia, the second largest regulated exchange in Australia, offering trading in equities and listings for Warrants, ETFs, and “TraCRs”; and Chi-Tech, in Hong Kong & Philippines, a technology service and development units supporting the market centers in Japan and Australia.
In 2021, Cboe Global Markets agreed to buy Chi-X Asia Pacific Holdings Ltd. from the private equity firm J.C. Flowers & Co. LLC, expanding the Cboe’s reach into Japan and Australia. The acquisition was completed in June of 2021.[13]
References[edit]
- ↑ Chi-X Said Exploring Sale Valuing Market at $400 Million. Bloomberg.
- ↑ Chi-X Global sells Asian units to JC Flowers. The Financial Times.
- ↑ Chi-X Global and BM&FBOVESPA Team to Streamline International Trading into Brazil. BusinessWire.
- ↑ Chi-X Japan Receives Launch Approval. BusinessWire.
- ↑ Press Release. Chi-X Global.
- ↑ Chi-X bets on Asia equity trading demand. Financial Times.
- ↑ Chi-X reviews options for Asian expansion. The Financial Times.
- ↑ Instinet Seeking New Investors for Chi-X Global. The TRADE News.
- ↑ Chi-X Global Announces New Equity Investors. Chi-X.
- ↑ BATS GLOBAL MARKETS. Optiver.
- ↑ BATS buying Chi-X Europe, challenge national rivals. Reuters.
- ↑ Chi-X Said Exploring Sale Valuing Market at $400 Million. Bloomberg.
- ↑ Cboe Global Markets Completes Acquisition of Chi-X Asia Pacific. PR Newswire.