Chi-X Canada ATS Limited, a wholly owned subsidiary of alternative trading venue operator Chi-X Global Holdings LLC, today announced it has contracted with consulting firm NuPont Canada Ltd. to assist in its efforts to introduce a new market data offering aimed at retail investors.
Since its launch in February 2008, Chi-X Canada has worked closely with the trading community to find novel ways to lower the overall cost of trading through the introduction of innovative pricing, advanced order types and smart routing services. Today Chi-X operates two lit trading venues in Canada, which collectively captured 21.6% market share of TSX-listed securities in August 2013.
While the trading community has largely benefited from competition in trading fees, there is an opportunity for Chi-X to pass additional savings to retail investors. Using input from NuPont and feedback from retail clients, Chi-X Canada has introduced a lower real-time market data fee for retail investors. Most major markets globally offer real-time market data in two fee categories, Professional and Non-Professional. Chi-X Canada's new Retail Professional fee category is designed to lower market data costs and to encourage greater market participation for retail investors and investment advisors who are currently grouped under the Professional fee category.
Dan Kessous, CEO of Chi-X Canada, commented: "We are sensitive to the rooted costs our clients and their customers face in today's markets, and believe that we are in a position to help them bring about positive change to their business whether for market data or trading. Chi-X has been and continues to be a catalyst in putting downward pressure on trading fees in Canada, and we are now looking to do the same for market data."
Chris Lampropoulos, Executive Director, NuPont Canada Ltd., commented: "The sheer volume of technological, regulatory and market structure changes have presented a number of challenges over the past few years—both in Canada and internationally—the trading community is still working to better understand the interrelationships of these changes and how to take advantage of new opportunities and strategies to reduce costs, particularly in the market data space. This is esppecially true today for retail businesses, which have the largest real-time data footprint in Canada, and where I believe there is opportunity for cost relief, by taking advantage of the new Chi-X retail professional fee."