Nov. 23 (Bloomberg) -- Chi-X Australia Pty., Australia’s sole stock-exchange competitor to ASX Ltd., said its Chief Executive Officer Peter Fowler will step down in early 2013 and will remain as a director on the board.
ASX, the operator of Australia’s main stock exchange, lost its monopoly as the country’s only public bourse last year with the entry of Chi-X Australia. Traditional exchanges worldwide are losing market share to dark pools and other alternative venues, such as Chi-X. Chi-X Australia yesterday handled A$423 million of trades and recorded a market share of 12.4 percent, according to the statement.
“I would like to thank Peter for his myriad contributions over the past five years, as his leadership, knowledge and tenacity have proved invaluable as we’ve built the business,” Tal Cohen, CEO of Chi-X Global Holdings LLC, said in a statement today. “Chi-X’s arrival has been good for the Australian market and resulted in better market infrastructure for all trading participants. The cost of trading has been ‘‘lowered, price improvement opportunities are now presenting themselves to all investors and a more robust infrastructure and regulatory regime is in place.’’
As part of the Australian government’s attempt to increase its presence as a financial hub by opening up Asia-Pacific’s fourth-largest equity market, the country is considering whether or not to allow ASX to maintain its monopoly over the clearing and settlement of trades.
‘‘While appreciating that adapting to significant market structure changes such as the ones we’ve seen in Australia is not without its challenges, I believe it is important that the Australian market continues to innovate, improve and, where appropriate, reform,” Fowler said in the statement. “For instance, there are clear benefits to all trading participants and investors in enabling competition in other areas of the trade cycle, particularly clearing.”
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