Five firms, including BofA Merrill Lynch, GETCO, Goldman Sachs, Morgan Stanley and Quantlab Group, have taken a minority stake in Chi-X Global Holdings. Chi-X Global operates a trading platform and is the holding company for Chi-X Canada, Chi-X Japan and Chi-X Australia, which is expected to launch Oct. 31. Instinet, which is owned by Nomura Group, is the largest equity holder of Chi-X. Financial Technology Partners provided financial advice to Instinet and Chi-X global.
Chi-X Global Holdings LLC announced today that five major
financial institutions have taken a minority stake in the firm. Chi-X Global Holdings is the holding
company for Chi-X market operators Chi-X Canada, Chi-X Japan and Chi-X Australia, which will launch
on October 31, 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
· 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,” said Tal Cohen, 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,” said 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,” said 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.
About Chi-X Global Holdings LLC
Owned by a consortium of major financial institutions, Chi-X Global operates Chi-X Canada, Chi-X
Japan, jointly operates Chi-East (a 50:50 venture with a subsidiary of the Singapore Exchange) and
expects its Chi-X Australia unit to commence operations later this month. Its Chi-Tech technology
services unit provides technology to its business lines and its Chi-FX platform is planned for launch in
Brazil during Q1 2012 in a venture with BM&FBOVESPA.