Nasdaq to Acquire Chi-X Canada
"This acquisition is an important part of our North American strategy as Chi-X handles about 22% of the order flow of S&P/TSX Composite securities in Canada," said
The deal will expand Nasdaq's North American equities trading business beyond the U.S., where Nasdaq currently operates multiple trading venues in cash equities, options, commodities, fixed income and other financial instruments. The acquisition will ultimately enhance the trading experience for customers by promoting greater uniformity in technology and functionality across U.S. and Canadian trading venues.
"Nasdaq and Chi-X Canada have both demonstrated their commitment to market innovation and efficiency," said
Chi-X Canada's two platforms, Chi-X Canada and CX2, are the only equity trading venues in
Subject to customary regulatory approvals, Nasdaq will acquire Chi-X Canada for an undisclosed amount. The acquisition is expected to be accretive to the company's earnings at closing, excluding transaction-related costs,
to deliver attractive returns on capital, and should have no material impact on Nasdaq's financial leverage or capital return strategy. It is expected that
"This is a significant acquisition for Nasdaq, as Canada's GDP has grown more than 50% in U.S. dollars, and 16% inflation-adjusted, since 2005," said
Over the next twelve months, Nasdaq will work closely with Chi-X Canada's clients to create a seamless transition to its world-class INET exchange technology.
A subsidiary of Chi-X Global, Chi-X Canada is an operator of high-performance marketplaces for the trading of TSX and TSXV listed securities. Chi-X Canada's two platforms - Chi-X Canada and CX2 - offer market-agnostic smart routing, advanced order types, trade reporting, risk management tools, historical market data and cross connectivity services. Like all Chi-X Global platforms, Chi-X Canada and CX2 aim to provide cost savings to investors through trading efficiencies, ultimately helping to improve investment performance.
Owned by a consortium of major financial institutions, Chi-X Global operates market centers in
Cautionary Note Regarding Forward-Looking Statements
Information set forth in this communication contains forward-looking statements that involve a number of risks and uncertainties. Nasdaq cautions readers that any forward-looking information is not a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking information. Such forward-looking statements include, but are not limited to (i) projections about our future financial results, growth, trading volumes, taxes and achievement of synergy targets, including in connection with the planned acquisition of Chi-X Canada, (ii) statements about the closing or implementation dates and benefits of the Chi-X Canada acquisition, (iii) other statements that are not historical facts. Forward-looking statements involve a number of risks, uncertainties or other factors beyond
Nasdaq's control. These factors include, but are not limited to, Nasdaq's ability to implement its strategic initiatives, including completion of the acquisition and subsequent integration of Chi-X Canada, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in Nasdaq's filings with the
Joe ChristinatNasdaq 646 441 5121 Joseph.Christinat@nasdaq.com Beth Haines Chi-X Global Holdings LLC+852 2290 6559 Elizabeth.Haines@chi-x.com
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