Chi-X Global is in advanced talks with four trading firms and banks to take a minority stake in the alternative share trading platform operator reports the FT, citing "three people familiar with the matter".
The group is in talks with Getco, the Chicago-based proprietary trading firm, Quantlab Financial, a Houston-based rival, Deutsche Bank and Bank of America Merrill Lynch about taking a stake as part of a deal which values Chi-X Global at around $50m, the UK broadsheet reports.
Chi-X Global is owned by Nomura through its Instinet trading arm. The Japanese investment bank has recently moved to restructure management reporting lines between its equity trading desks and Instinet's agency business.
Chi-X Global currently has alternative trading platforms operating in Canada and Japan, and an application pending in Australia. It is also working with SGX to create a pan-Asian dark pool.
Elsewhere on the global exchange M&A front, the London Stock Exchange and Canada's TMX Group are mulling a critical report on their proposed merger by an all-party committee of Ontario legislators.
The Ontario panel has demanded a number of changes to the proposed link-up, and called for an equal split in board positions between London and Canada.
Releasing the report, Gerry Phillips, chairman of the select all-party committee of the Ontario legislature, stated: "Under the terms of the proposed merger, the centre of gravity in regards to the decision-making ability of Ontario and Canada will move to London."