Five major financial institutions have taken a minority stake in Chi-X Global Holdings LLC, the holding company for Chi-X market operators Chi-X Canada, Chi-X Japan and Chi-X Australia, which will launch on 31 October, 2011.
It also jointly operates Chi-East, an independent, non-displayed liquidity pool in Singapore, through a joint venture with a subsidiary of the Singapore Exchange, and has developed the Chi-FX product in a venture with BM&FBOVESPA that is scheduled for commercial launch in Brazil early next year.
The new investors include: BofA Merrill Lynch; GETCO, LLC; Goldman Sachs; Morgan Stanley; and Quantlab Group, LP. Instinet Incorporated, a Nomura Group company, remains the largest equity holder in Chi-X Global through a subsidiary company.
“The investment that our equity partners have made today demonstrates their commitment to Chi-X Global and its businesses,” says Tal Cohen (pictured), CEO of Chi-X Global. “With the support of our investors, Chi-X Global is well positioned to continue its growth and remain a positive force for change through market innovation and the introduction of competition.”
“Since inception, Chi-X has established its reputation as a market innovator globally,” says Bina Kalola, head of Strategic Direct Investments for Global Equities at BofA Merrill Lynch. “We look forward to our new relationship with Chi-X Global and its management team and to bringing greater efficiencies to markets across the globe.”
“On behalf of Nomura and Instinet, we are pleased to welcome our new investors and we look forward to working with them and building further on Chi-X Global’s well-established brand,” says Fumiki Kondo, Chairman of Chi-X Global and co-CEO of Instinet Incorporated.
Financial Technology Partners LP and FTP Securities LLC acted as the exclusive financial advisors to Instinet and Chi-X Global. Financial terms of the transaction were not disclosed.