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| {{Unreferenced|date=November 2008}} | {{Unreferenced|date=November 2008}} | ||
| '''Chi-X''' is an order-driven pan-European equity exchange, or ] (MTF). | '''Chi-X''' is an order-driven pan-European equity exchange, or ] (MTF). | ||
| It is an alternative exchange and trades equities that are listed on primary exchanges such as the ], ], ] and ]. | It is an alternative exchange and trades equities that are listed on primary exchanges such as the ], ], ] and ]. In contrast to a traditional electronica order-driven exchange where the order book, or at least some subset thereof, is visible to market participants, Chi-X is unique amongst equity exchanges in that it operates a ] of liquidity - the orders are not visible to anyone bar the exchange. | ||
| ===History=== | |||
| Chi-X was able to be setup due to an EU directive promoting competition between exchanges. | |||
| ===Comaprison with other exchanges=== | |||
| As mentioned above Chi-X was set up to compete with the major exchanges (who benefited from first mover advantages) and so there are two major differences. Firstly, the costs of executing a trade on Chi-X are significantly less than those of executing it on a competing exchange. This comes from both the round trip cost (that is to say, cost per trade) and the incidental costs - for example a live feed to realtime last trades on Chi-X is free, whilst a live feed to the ] comes into several thousands of pounds, and secondly the aforementioned dark liquidity which allows bigger trades to be put through without (theoretically) the market distortions that may be associated with performing them on more transparent markets. | |||
| It is a subsidiary of ], which is itself a subsidiary of ]. | It is a subsidiary of ], which is itself a subsidiary of ]. | ||
Revision as of 13:50, 9 March 2009
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Chi-X is an order-driven pan-European equity exchange, or Multilateral trading facility (MTF). It is an alternative exchange and trades equities that are listed on primary exchanges such as the London Stock Exchange, Frankfurt Stock Exchange, Euronext and OMX. In contrast to a traditional electronica order-driven exchange where the order book, or at least some subset thereof, is visible to market participants, Chi-X is unique amongst equity exchanges in that it operates a dark pool of liquidity - the orders are not visible to anyone bar the exchange.
History
Chi-X was able to be setup due to an EU directive promoting competition between exchanges.
Comaprison with other exchanges
As mentioned above Chi-X was set up to compete with the major exchanges (who benefited from first mover advantages) and so there are two major differences. Firstly, the costs of executing a trade on Chi-X are significantly less than those of executing it on a competing exchange. This comes from both the round trip cost (that is to say, cost per trade) and the incidental costs - for example a live feed to realtime last trades on Chi-X is free, whilst a live feed to the LSE comes into several thousands of pounds, and secondly the aforementioned dark liquidity which allows bigger trades to be put through without (theoretically) the market distortions that may be associated with performing them on more transparent markets.
It is a subsidiary of Instinet, which is itself a subsidiary of Nomura Holdings.
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