JC Flowers & Co had able to acquire stock exchange Chi-X Australia along with Chi-X Japan and Chi-Tech Hong Kong with a concealed amount. The news of the said sale had been making rounds for the past six months following the acquisition of Nasdag of the Chi-X Canada last December.
The managing director of JC Flower & Co, Thierry Porte said in a statement that the Chi-X businesses have established themselves as successful and innovative alternatives to primary exchanges. Furthermore, the executive said that JC Flowers has invested exclusively in financial services.
Porte added: “Their superior technology, service and trade execution performance will continue to drive positive change and improve markets where they operate. We hope to accelerate this growth through continued enhancements to the platform, including new investment products and markets, and by leveraging our strong relationships throughout the Asia Pacific region.”
On the other hand, John Fildes told Fair Media that he will be staying in the position as chief in the Chi-X Australia after the deal is finalized by the end of March. As quoted, “I am definitely staying here. I am very excited about it.”
Mr. Fildes had worked with Mr. Porte as head electronic trading at Morgan Stanley when Mr. Porte headed up its Japanese business. Furthermore he said: “I think it is great for the company. At a time when we have launched a series of new innovative platforms, including warrants and we will soon offer ETFs, JC Flowers has bought the company understanding our plans and wanting to back those and will want to grow the company even more aggressively,”
Chi-X Global chief Tal Cohen, “…in the past five years Chi-X had become an integral part of the financial markets in Asia Pacific region through our commitment to competition and innovation”
Chi-X Global owned Chi-X Australia, but the ultimate owners were Nomura’s Instinet, and minority owners UBS, Bank of America Merrill Lynch, GETCO LLC, Goldman Sachs, Morgan Stanley, and Quantlab Group LP.
Accordingly, Chi-X Australia has now reached 20 percent share of Australian share trading volume and made its first profit in 2015 after four years of operation in Australia. Mr. Fildes also said that the investments its making will likely mean that won’t be happen again this year.
Aside from Chi-X, JC Flowers also has stakes in Shinsei Bank of Japan, KT Capital Corporation, a Korean non-bank finance company and SICOM Ltd, a provider of financial solutions and advisory services in India.
JC Flowers has about US$8 billion ($11.4 billion) in investments.