Bloomberg News

Chi-East to Trade Australian Stocks, Increase Users on Demand

October 05, 2011

Oct. 5 (Bloomberg) -- Chi-East Pte, the dark-pool stock operator jointly owned by Singapore Exchange Ltd. and Chi-X Global Inc., plans to expand its service to Australia and sign on more clients as demand grows, Chief Executive Officer Ned Phillips said.

Trading volumes on the alternative trading platform, which doesn’t display quotes publicly, has been rising since it started operating in November 2010. The value of shares traded on the system increased to $71.1 million in three months ended Sept. 30, compared with $23.5 million in the previous quarter, the company said in statement yesterday.

“In the past six months, people have seen liquidity, and there are more clients coming on,” Phillips said in a phone interview yesterday. “It’s the first 12 to 18 months you see significant growth and after that, you continue to grow but at a more level pace.”

Chi-East allows clients to trade equities listed in Singapore, Hong Kong and Japan. The company is finalizing a deal to include Australian stocks into its platform, Phillips said.

Instinet Inc., Deutsche Bank AG, Morgan Stanley, Nomura Holdings Inc., UBS AG, Investment Technology Group Inc., J.P. Morgan Chase & Co. and The Royal Bank of Scotland Group Plc are among the institutions using Chi-East services.

“We’ve got another few clients coming on in the next quarter,” Phillips said, adding that he aims to add at least three customers every three months.

--With assistance from Jon Burgos in Singapore. Editors: John McCluskey.

To contact the reporters on this story: Eleni Himaras in Hong Kong at ehimaras@bloomberg.net;

To contact the editor responsible for this story: John McCluskey at j.mccluskey@bloomberg.net.


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