Nasdaq acquires Chi-X Canada
Alternative trading system Chi-X Canada has been bought by Nasdaq, as part of a push by the global exchange group to grow its presence in North America’s largest country. The deal is expected to go through in Q1 next year.
Chi-X Canada accounts for about 22% of the order flow of the S&P/TSX Composite index, which lists the top securities that trade on the Toronto Stock Exchange. Chi-X Canada also runs two platforms, Chi-X Canada and CX2, which Nasdaq says are of interest because they are the only equity trading locations in Canada offering tailor-made smart order routing to all market centres.
Nasdaq also cited the fact that Canada’s GDP has grown more than 50% in US dollars over the last decade.
Canada’s stock market has a complicated recent history. In 2011, the incumbent Toronto Stock Exchange came close to being bought by the London Stock Exchange. However, the deal collapsed when a group of Canadian banks called the Maple Consortium decided to buy the exchange instead. In 2012, Chi-X Canada became the only independent competitor left standing after rival Canadian ATS Alpha Group was bought by the Maple Group. However, it lost that status in March 2015 when new Canadian ATS Aequitas Neo launched, led by former Alpha Group chief executive Jos Schmidt.
