Chi-X Australia (Chi-X) is now open for trade, Bloomberg reports. The bourse will compete on pricing to wrest market share from monopoly exchange owner ASX. Chi-X will trade only eight securities in the first week and provide an alternative platform for brokers trading all shares in the S&P/ASX 200 Index next week onwards.
Chi-X will make use of a maker-taker pricing model to draw volume. The exchange will be used by 22 brokerages, including Citigroup, Credit Suisse Group, Morgan Stanley, Deutsche Bank, UBS and Merrill Lynch. It is Australia’s first foreign-owned exchange and a subsidiary of New York–based Chi-X Global owned by Japan’s biggest brokerage Nomura Holdings.
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