Chi-X market share rises

Fildes says price improvement is behind the order flow to the ASX competitor.

Chi-X Australia Ltd says it is on a roll.

From a ‘next to nothing’ market share of all Australian cash equity trading two years ago when it set up its local business, Chi-X’s market share yesterday hit 25 per cent with the total value of trading rising for the third time to more than $1 billion.

“Our market share has been inexorably on the rise,” Chi-X Australia’s chief executive John Fildes told DataRoom. “Flow begets flow.”

Fildes says 34 of the exchange's daily participants account for 97 per cent of all Australian equity trading, including trading on the ASX. About 30 per cent of all Chi-X’s order flow is from brokers who cater to individual investors, including CommSec, ETrade and Australian Investment Exchange.

In October, Chi-X claims to have made more than a $2 million price improvement for its clients. Last week, Fildes says 35 per cent of Chi-X trades with price improvement averaged 28 basis points.

“The best price is the most important criteria,” he says.

Yesterday, Chi-X accounted for 12 per cent of all National Australia Bank Ltd trades, 13 per cent of Telstra Corp’s and 19 per cent of AMP Ltd’s.