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QUICK TAKE: PDQ’s Don Ross Says NYSE/CHX Deal Aids System Gamers
Traders Magazine Online News, April 6, 2018
Thursday, ICE – parent operator of the New York Stock Exchange - announced it was going to purchase the Chicago Stock Exchange (CHX) for an undisclosed amount of money. Some sources have said the CHX could fetch upwards of $50 to $70 million.
The deal is expected to close in 2018, after which CHX will continue to operate as a registered national securities exchange based in Chicago, the company said on Thursday.
Don Ross, CEO of PDQ Enterprises, commented that the deal equals zero benefit to investors but more opportunity for gaming by predatory traders.
"The reported NYSE acquisition of CHX is just another example of how exchanges focus resources on their own success, versus focusing on the investors they are meant to serve,” Ross shared with Traders Magazine. “The CHX acquisition will do nothing for investors. It's purely about buying order flow and generating more data to sell.”
Furthermore, Ross added that while the CHX has a long history and the market should recognize and honor the positive role it played decades ago, “there is not a single investor who will be in any way impacted by its becoming a part of the ICE conglomerate. The only benefit is to the exchanges themselves, and to and to those participants who aim to game the system in new ways."
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