Chi-X, the multilateral trading facility that is seeking to break the hegemony of incumbent European exchanges, moved into profitability for the first time in September, just 17 months after launch.
The Chi-X platform, which claims to offer equity trading up to ten times faster and ten times cheaper than traditional exchanges, reported a 22.36% share of trading in FTSE-100 listed stocks during the third quarter, and significant market shares gains across other European indexes.
Speaking at Finexpo Execution Management, a one-day conference organised by Finextra in London, Chi-X chief Peter Randall said the business recorded its first profitable month in September. "A team of just 27 people have managed for the first time to break the duck and run a successful MTF against the incumbents," he said, noting that the platform has grown to become the fourth largest exchange in Europe.
The business operates a rebate model for participants, charging 0.3 basis points for aggressive execution and rebating 0.2 basis points for passive execution. Randall says the move into profitability came as the MTF executed trades valued at EUR256 billion in September.
Randall was sharing a podium with Stuart Rutherford, head of trading services at Plus Markets, Artur Fischer, joint CEO of Equiduct Trading, and Turquoise chief Eli Lederman.
Turquoise, which launched just two months ago, also claims to be winning business from the incumbent venues, racking up a 4.5% market share in the stocks it trades across 14 European countries.