New Chi-X Canada venue targets mid-tier brokers, retail market

Chi-X Canada's new CX2 alternative trading system has revealed its taker-maker pricing structure a month ahead of the venue's launch.

Chi-X Canada's new CX2 alternative trading system (ATS) has revealed its taker-maker pricing structure a month ahead of the venue's launch.

CX2 will look to attract participants accustomed to paying fees to take liquidity on other Canadian venues, in a bid to challenge lower-cost trading venues such as Omega and Select.

For trades over C$1 in value, the venue will offer active rebates of 0.001 cent per share against a passive fee of 0.0014. For hidden orders C$1 or over, a passive fee of 0.0009 is charged, while active orders are free.

For trades under C$1, the active rebate is 0.0006 against a passive fee of 0.001, while hidden orders below C$1 incur a passive fee of 0.0004, while active orders are free.

"We are excited to unveil a pricing schedule for CX2 that will provide the under-serviced segment of the market with greater choice and cost savings opportunities," Dan Kessous, CEO of Chi-X Canada said.

"Following the TMX Group's acquisition of Alpha we have heard calls from the industry for greater competition. With the introduction of CX2, we will provide a market place that services both the retail investors and the small to mid-tier brokers, groups that are currently disadvantaged on other markets," Kessous said.

The venue will launch in phases from Friday 3 May, initially trading in a subset of securities listed on the Toronto Stock Exchange and TSX Venture Exchange, before all securities on those venues will be traded.

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