Alternative trading system Chi-X Canada ATS Ltd. is planning a second ATS for the Canadian market.
The firm announced plans to launch a second lit marketplace, to be known as CX2 ATS, in the first quarter of 2013. Chi-X provided few details about the planned market, except to say that CX2 will represent a “unique market model”, that gives traders greater choice and functionality.
It promised that more information about pricing and functionality will be announced in the coming months, and that CX2’s regulatory filing will be made available for public comment prior to launch.
“Canada’s equity landscape will soon change dramatically. With CX2, we hope to satisfy the trading community’s demand for healthy competition and help ensure that Canada remains at the forefront of innovation both domestically and globally,” said Dan Kessous, CEO of Chi-X Canada.
The proposed new market comes in the wake of further consolidation of the trading space with Maple Group Acquisition Corp.’s successful acquisition of TMX Group Inc. and the largest ATS firm, Alpha Group. According to the latest market share data, Chi-X is now the biggest rival to the new TMX, accounting for 11.6% of the total value traded in the second quarter, trailing the TSX at 60.5% and Alpha’s 18.5% share. In terms of second quarter volume, it had an 8.4% market share, ranking it fourth behind TSX, TSX Venture Exchange and Alpha.
“Since our launch we have been committed to providing greater transparency and the means to reduce execution costs. CX2 aims to target under-serviced areas of the market such as institutional and retail investors. We’re excited to build upon Chi-X’s history of innovation with this launch,” added Kessous.