Chi-X Australia's Warrants Trading Platform Commences
OREANDA-NEWS. Chi-X Australia Pty Ltd, a wholly owned subsidiary of market operator Chi-X Global Holdings LLC, is delighted to announce that the first products on its warrants trading platform were successfully quoted and traded today, marking the establishment of a new investment products trading and issuing market in Australia.
CEO of Chi-X Australia John Fildes said, “Chi-X is working with issuers, brokers, its market participants, intermediaries and investors to build this new investment products marketplace. In the coming months we will drive liquidity and growth through increased investor awareness, more relevant and well-designed product, excellent execution and cheaper trading and issuing fees.”
Citi issued four MINI warrants for the launch of the new Chi-X market. A long MINI warrant over BHP is quoted using the code BHPKCA, while a short MINI warrant on BHP is quoted using the code BHPKCP. The corresponding long and short MINIs over CBA are quoted under the codes CBAKCA and CBAKCP respectively.
Adam Lavis, the Co-Head of Equities at Citi in Australia, said “As the number one market maker for warrants in Australia, we welcome competition in the market place and the introduction of the Chi-X warrants platform. This new entrant will help provide a broader array of investment opportunities for investors in the Australian market.”
Chi-X’s initiative to revitalize warrants trading in Australia is the first step in its investment products initiative that will also see Exchange Traded Funds (ETFs) and a range of investable indices be exclusively traded on Chi-X in the first half of 2016.
“With domestic investment options and returns harder to come by, Chi-X’s investment products marketplace aims to provide Australian investors such as SMSF’s with asset and product diversification, risk management and hedging tools, leverage where appropriate and access to offshore markets and new investment opportunities,” John Fildes said.
“In our four years of operation, Australian retail investors have come to embrace our cash equities trading platform’s efficient and fast execution, low trading fees and price improvement opportunities. Already in 2015 investors have saved more than A$34.6 million in price improvement opportunities on Chi-X. We are confident this success can be replicated on our easily accessed, transparently traded, Australian based and regulated investment products platform,” he added.
As part of its commitment to rebuild the market Chi-X is undertaking a comprehensive investor education program including producing a range of materials covering an investing in warrants booklet, a new website, a series of educational videos focusing on warrants, and in the near future a smart phone app with real time pricing, and a range of trading games.
About Chi-X® Australia
A subsidiary of global market operator Chi-X Global Holdings LLC, Chi-X Australia offers a valuable alternative for trading ASX securities using its low latency, high performance, proven trading system. Its launch introduced to the Australian market innovative new orders types, the potential for lower costs and a more efficient way to trade. In April 2015 Chi-X won “Best Alternative Trading System” of the year by leading regional financial publication The Asian Banker.
About Chi-X® Global Holdings LLC
Owned by a consortium of major financial institutions, Chi-X Global operates market centers in Australia, Canada and Japan. Chi-Tech™, the technology services unit of Chi-X Global, provides technology to its business lines and the Chi-FX™ platform.
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