# Chi-X Australia



## supermatt (20 June 2010)

Does anyone know anymore details about the ASX's new rival exchange chi x that is going to be introduced late this year? 

Apparently 90% cheaper than the asx. Sounds fantastic. It is about time Australians have more options to chose which exchange they trade through as the ASX has had its monopoly reigns for long enough, as clearly we have the most expensive exchange going around. Without getting to in depth I think having an alternative option might lure more traders back to trading our markets more actively due to lower commissions and more liquidity. I know it will interest me as that is one of the big reasons I dont trade the ASX ( ridiculously high commissions )  

From the articles I have read it sounds like the costs of data feeds, transactions will be greatly reduced as well are providing more liquidity.

Not sure how it will all work but I am interested in seeing what happens as we get through the year. 

Feel free to move this post where ever. Wasn't sure where to put it.


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## boofhead (20 June 2010)

*Re: chi-x*

ASX recently announced they are reducing costs - I would assume in response to Chi-X. I think July 1. Now will existing brokers reduce their fees?


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## cogs (20 June 2010)

*Re: chi-x*

Good news and about time!

Plenty of articles about it.
http://news.smh.com.au/breaking-new...-drop-on-chix-market-entry-20100331-rcp6.html


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## supermatt (20 June 2010)

*Re: chi-x*

just thought id ask what people know about it as there isn't alot of info out there on Google (apart from just saying chi x will be introduced late this year, around October)

Yes I have read all those articles cheers. Looks promising! 

I wonder how much they will reduce by if they do.


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## ThingyMajiggy (20 June 2010)

*Re: Chi-X*

lol, so everyones going to be trading chix now?


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## DB008 (20 June 2010)

*Re: Chi-X*

Agree with comments above. Any competition is good competition. About time.
Lots of info on Chi-X out there. There was also an article in the AFR a weeks ago, weekend edition. Chi-X have taken Europe by storm in the last few years. The LSE has lost a lot of ground to Chi-X.

ASX  are pretty expensive, but then again, if IB can charge $6 for a buy or sell order, l'm sure that that others could too? Or, am l wrong in thinking that? i would actually love to know what the profit margins are for brokers on shares?


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## sinner (29 August 2010)

Anyone got cheaper brokerage yet?



> ASX on Thursday announced fee reductions from July 1, including trade execution fees that will cut the fee brokers charge investors to trade.




Did this just not go ahead, or are Aussie retail brokers still charging customers the old brokerage fee and pocketing the difference?

Does anyone know which companies are going to be listed on the new exchange?

Considering the electronic nature of brokerage these days, I have no idea what is the basis for the $15-30 fee most seem to be charging. The norm in the US seems to be about 5-10USD with some brokers offering unlimited trading for a yearly fee of around $300!


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## sinner (30 August 2010)

Just received the following from the ASX:



> Thank you for your email.
> 
> Yes, the ASX did reduce its headline trade execution fee on July 1 of this year. The headline trade execution fee was reduced from 0.28 basis points (bps) to 0.15 bps
> 
> ...




Headline trade execution fee almost halved and retail is still paying the same price.

Surely grounds for the ACCC to investigate?


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## supermatt (30 August 2010)

sinner said:


> Just received the following from the ASX:
> 
> 
> 
> ...




THIS IS BULL$h!t. when the hell are aussie traders going to get a fair deal?
and no, dont say IB


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## white_goodman (12 October 2010)

any news on when they coming in?


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## supermatt (12 October 2010)

no joke. how slow does this process want to be! no updates at all. by the sounds wont be happening until mid next year.


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## boofhead (12 October 2010)

There has been news on it. I can't remember the details but I think it is something like March 2011 or maybe a little later.


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## alphaman (27 October 2010)

Even when Chi-X arrives, how do we know companies will want to list on Chi-X? Won't they have to pay another listing fee?


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## Happy (7 February 2011)

E"Trade changed fee to just under $20

Must be their move to secure trader's support


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## ROE (7 February 2011)

they wont launch March 2011, there is a delay in regulation and if SGX get its hand on ASX then Chi-X future is uncertain as Chi-X has link with SGX

I saw an article some where see if i can find the link


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## prawn_86 (4 May 2011)

All confirmed now by regulators. Not sure of the launch timeframe.


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## Gringotts Bank (4 May 2011)

http://online.wsj.com/article/SB10001424052748703922804576302072484237288.html?mod=googlenews_wsj

How will this work>?  Will all brokers participate?  Will all companies be dual listed?


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## warennie (4 May 2011)

How does it all work? Will stock be on either the ASX or Chi-X or will they be on both?

If on both, does equilibrium keep them equal, as in all traders will watch both the ASX and Chi-X...


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## warennie (4 May 2011)

Nevermind, kind of answered my own question: http://en.wikipedia.org/wiki/Cross_listing


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## tothemax6 (4 May 2011)

Nice one! Another exchange to end the ASX monopoly.
I'm sure the hi frequency trading funds will be looking at the real estate about half way between the two.


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## Russell (5 May 2011)

Competition will benefit everyone. Hopefully brokerage prices will decrease even more.


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## nulla nulla (5 May 2011)

i'm curious as to how the live feed from groups like "Iress" will address the depth of buy sell lists. Will shares be listed on both exchanges and the queue be an amalgamation of buy/sell bids lodged with both exchanges or will they be completely seperate stand alone exchanges like Newcastle, Bendigo etc?


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## kingcarmleo (6 May 2011)

Any news on the blackpooling of funds?


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## laderic (12 October 2011)

This may be interesting for brokers, but not very significant for traders. The exchange fees are such a small part of what brokers are charging for share trades.

E.g., Interactive Brokers charges 0.08% of the trade value, with a minimum of $6. That's 8 basis points. The ASX fee is 0.15 basis points.

So if my understanding is correct, and you buy 50000 shares at $1 each, the broker fee is $40, while the ASX fee is $0.75. Even if the Chi-X fee is half that, it's no big deal.


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## Wysiwyg (17 October 2011)

Heard Chi-X will open for business on 31st October, the end of this month. Set to undrcut the ASX monopoly by 40%. Yip yip yip yip.  Oh it is only on the ASX200 and ETF's. 



> Chi-X Australia will commence operations on 31 October with a “soft launch,” which will permit trading in eight securities. Upon satisfactory completion of the soft launch phase, trading will be permitted in all S&P/ASX 200 component securities and ASX-listed ETFs.


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## Julia (17 October 2011)

nulla nulla said:


> i'm curious as to how the live feed from groups like "Iress" will address the depth of buy sell lists. Will shares be listed on both exchanges and the queue be an amalgamation of buy/sell bids lodged with both exchanges or will they be completely seperate stand alone exchanges like Newcastle, Bendigo etc?



A discussion on ABC Radio this evening suggested the two exchanges would function independently with quite possibly different buy/sell prices appearing on each at any given time.


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## So_Cynical (18 October 2011)

Julia said:


> A discussion on ABC Radio this evening suggested the two exchanges would function independently with quite possibly different buy/sell prices appearing on each at any given time.




On business Sunday program (ABC - Alan Kohler) they said that a lot of the big foreign trading houses will be using automatic trading scrips and programs to profit from arbitrage opportunity's.


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## Happy (31 October 2011)

Chi-X started today.

Looked at their site, but very little could find.
Does anybody have link to see prices?
Or it is only for clients?


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## Wysiwyg (31 October 2011)

Oh I thought brokerage fees might be lowered but Comsec reckons the brokerage will remain the same. Comsec will not be using the Chi-X order book for retail customer order execution at present as was revealed in Comsec's best execution policy disclosure statement.


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## pixel (31 October 2011)

Wysiwyg said:


> Oh I thought brokerage fees might be lowered but Comsec reckons the brokerage will remain the same. Comsec will not be using the Chi-X order book for retail customer order execution at present as was revealed in Comsec's best execution policy disclosure statement.



 Westpac said something similar:
They will introduce a best outcome prder, but only after monitoring Chi-X for about a year:


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## Happy (1 November 2011)

Wysiwyg said:


> Oh I thought brokerage fees might be lowered ....




E”Trade made pre-emptive move while ago lowering share trading fees from $24.95 to $19.95 
With no difference to orders above $25,000 where % is used.

Hope their monopoly will be broken with Chi-X!

IB can do it, so why others have to charge 3, 4 or 6 times as much, only because they can?


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## Happy (4 November 2011)

I think I understand it.

Chi-X is something like ASX and now I need agent that will deal between Chi-X and me and offer me broker charges below $15 per trade under $5,000 to make it competitive/attractive.

Or IB like, with minimum charge of around $6

Of course another question remains will budget broker also provide access to what happens on Exchange in real time or with minimal delay?

Time will tell, suppose.


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