Chi-X Europe latest to slash fees

Chi-X Europe latest to slash fees

Multilateral trading facility Chi-X Europe has outlined plans for an aggressive pricing promotion this autumn as the battle for equity market share across the continent continues to rage.

The MTF says participants that double their trading activity in September compared to the previous three month average will get a fee cut to 0.2 basis points in October - down from the current 0.3bps.

The offer only applies to Chi-X Europe's visible order types, and will be valid for trades in any of the 14 markets in which the MTF offers trading.

Chi-X Europe pays a rebate of 0.2 basis points for passive executions (posting orders) meaning customers that post 50% aggressive and 50% percent passive in October will trade for free.

Mark Howarth, CEO, Chi-X Europe, says: "We are delighted to be able to offer our trading participants the opportunity to reduce trading fees across all of Chi-X Europe's markets."

News of the Chi-X promotion comes just days after rival MTF Bats Europe outlined plans to invert its pricing schedule for UK stocks during September. Bats will charge 0.2 basis points for trading but offer a 0.4bps rebate for adding liquidity, effectively paying customers to trade.

The continent's largest MTF, Chi-X Europe is owned by Instinet - which also operates Ch-X Global - and other market participants, including BNP Paribas, Citi, Goldman Sachs and UBS.

According to Bloomberg, the platform's success has prompted Chi-X Global into bidding to buy out other shareholders. Citing five people familiar with the situation, Bloomberg says Chi-X Global proposed buying out minority owners of the unit for stock that values the business at $177.3 million. The proposal was reportedly made at a meeting in London on 14 August but some owners consider the offer too low.

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