Nasdaq will acquire Chi-X Canada, the alternative trading system for Toronto Stock Exchange (TSX) and TSX Venture Securities, from Chi-X Global.
The acquisition of the ATS will provide Nasdaq with direct access to the Canadian equities market. Subject to customary regulatory approvals, Nasdaq will acquire Chi-X Canada for an undisclosed amount.
This acquisition is an important part of our North American strategy as Chi-X handles about 22 percent of the order flow of S&P/TSX Composite securities in Canada, said Hans-Ole Jochumsen, president of Nasdaq. The addition of these thriving marketplaces will create a powerful combination for investors.
The deal will expand Nasdaqs North American equities trading business beyond the U.S. border.According to a press statement, the Chi-X Canada deal will ultimately enhance the trading experience for customers by promoting greater uniformity in technology and functionality across U.S. and Canadian trading venues.
[Traders looks at the October Trading Volume.]
Nasdaq and Chi-X Canada have both demonstrated their commitment to market innovation and efficiency, said Tal Cohen, CEO of Chi-X Global. We believe Nasdaq is well positioned to enhance Chi-X Canadas current capabilities and to capitalize on new product and asset class opportunities, while maintaining Chi-X Canadas core values of cost-effective and client-driven solutions.
Chi-X Canada is made up of a pair of platforms, Chi-X Canada and CX2. The ATS claims that they are the only equity trading venues in Canada to offer fully-customizable smart order routing to all market centers, and offer two trading models: post-trade attribution and advanced order types. Both also provide trade reporting, risk management tools and direct connectivity.
This is a significant acquisition for Nasdaq, as Canadas GDP has grown more than 50 percent in U.S. dollars, and 16 percent inflation-adjusted, since 2005, said Tom Wittman, executive vice president, global head of equities, Nasdaq. We look forward to working with the Chi-X Canada clients to develop new products and services to help them better navigate the global capital markets.
The deal is expected to close in the first quarter of 2016.
