Chi-X, the low-cost trading platform for equities launched by Instinet Europe a few months ago, is already capturing significant trading in some of the largest Dutch and German stocks, Financial Times reports.
Its market gains suggest that competition between low-cost platforms with Europe’s established stock exchanges is inevitable.
The success of the trading platform comes before the advent of new European rules aimed at promoting competition, known as Mifid, and the launch of an even more formidable potential competitor backed by Europe’s largest investment banks, dubbed Project Turquoise.
Chi-X’s early success suggests that the new platforms could spell trouble for the region’s established exchanges.
The latest turnover data available show that for the week ended September 1, 26 per cent of all trading in shares of Philips, the Dutch electronics group, was on Chi-X’s high-speed platform.
On one day, August 29, Chi-X accounted for more than 44 per cent of all trading in that company’s stock.