Investment bank Credit Suisse has taken a stake in AXE ECN, an alternative trading platform being set up to compete with the Australian Stock Exchange. The size of the stake or the amount paid was not disclosed. The bank says it has invested in AXE in a bid to offer its clients improved access to a high-speed, low-cost trading platform.
Credit Suisse says that itself and the six other shareholders of AXE will account for more than 40% of equity trading in Australian Stock Exchange-listed securities.
“Our investment in AXE complements the existing Credit Suisse electronic trading capabilities and reflects our commitment to best execution for our clients,” said David Trude, country manager for Australia at Credit Suisse, in a statement. “The ultimate winners will be investors, who will have the benefit of shared expertise on business development and healthy competition in the Australian market.”
AXE CEO Greg Yanco added, “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.”
Aside from Credit Suisse, AXE’s shareholders comprise New Zealand Exchange, Citigroup, CommSec, Goldman Sachs JBWere, Macquarie Bank and Merrill Lynch. AXE is hoping to launch its full equities trading platform in the fourth quarter of 2008.