Credit Suisse is acquiring an undisclosed stake in Axe ECN, which is being set up by the New Zealand Exchange (NZX) and five other banks to compete with services provided by the Australian Stock Exchange (ASX).
The ECN, which is expected to launch in mid-2008, will provide off-market trade execution reporting services to brokers in Australia.
The venture was first disclosed in 2006 and NZX said it would hold a 50% stake in the unit with Citi, Commonwealth Securities, Goldman Sachs JBWere, Macquarie and Merrill Lynch each holding a 10% shareholding.
The size and value of the Credit Suisse stake has not been disclosed.
Commenting on the ECN, David Trude, country manager, Australia, Credit Suisse, says: "The ultimate winners will be investors, who will have the benefit of shared expertise on business development and healthy competition in the Australian market."
Greg Yanco, CEO, Axe, adds: "Direct involvement by Credit Suisse, alongside the serious weight of our other shareholders, brings the AXE vision of faster, cheaper and smarter trading for Australia that much closer to reality."