Nasdaq says it is to acquire Chi-X Canada, an Alternative Trading System for Toronto Stock Exchange (TSX) and TSX Venture Securities, from Chi-X Global in a move that will provide it with direct access to the Canadian equities market. The deal is expected to close in the first quarter of next, and be accretive to the company’s earnings at closing, excluding transaction-related costs.
The acquisition is described as an important part of the buyer’s North American strategy as Chi-X handles about 22 percent of the order flow of S&P/TSX Composite securities in Canada, by Hans-Ole Jochumsen, Nasdaq president. The addition of these thriving marketplaces will create a powerful combination for investors, he adds
The deal will expand Nasdaq’s North American equities trading business beyond the US, where Nasdaq currently operates multiple trading venues in cash equities, options, commodities, fixed income and other financial instruments. Nasdaq says the acquisition will ultimately enhance the trading experience for customers by promoting greater uniformity in technology and functionality across US and Canadian trading venues.