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Key Benefits
Chi-X – Beneficial to the International Investment Community
Chi-X’s innovative trading platforms have been developed in response to the diverse needs of the international trading community. Chi-X offers scalable capacity, low-latency, low-cost trading and advanced order types to help participants achieve the best possible execution for their clients.
Chi-X believes that by offering a competitive alternative, markets become more attractive to participants and end clients. Chi-X’s sophisticated proprietary technology aims to offer investors a faster, cheaper and smarter means of trading equities in markets worldwide. The Overseas Example
In North America the introduction of competition among markets has seen bid-offer spreads tighten, explicit trading costs reduce and overall market turnover increase. More liquidity, more efficient markets, and price improvement opportunities delivering better trading outcomes for investors represent just some of the benefits for investors and traders alike. Chi-X Canada is now the second largest ATS in the Canadian market and continues to grow strongly in a vibrant and highly competitive environment. In 2009 an independent report* assessed the implications of competition and the emergence of high frequency trading in the Canadian market as follows:
 Bid-Ask spreads have tightened, in some cases by up to 36%; Intra-day tick volatility is down 11.1%, implying more orderly markets; Average quoted depth is up 120%; Trading costs (versus an arrival price benchmark) are 45% lower than pcp; VWAP performance improved 28% or 1.5 bps year on year with small cap stocks improving by 60%.Verdict: More stock available at a tighter spread with less volatility – enhanced trading performance and a win-win for markets and participants.
Chi-X is well-placed to establish successful market models worldwide with access to a global infrastructure and resources to meet the demands and expectations of the international investment community. |
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