Nasdaq Inc. agreed to buy Chi-X Canada for an undisclosed amount, setting up a clash with the Toronto Stock Exchange.
The acquisition is expected to close in the first quarter of 2016, Nasdaq said Tuesday in a statement. Dan Kessous, chief executive officer of Chi-X Canada, will continue to lead the Canadian equities trading business.
The transaction gives Nasdaq a beachhead in the world’s eighth-largest stock market. Chi-X Canada was launched in 2008 and now accounts for about 13 percent of the nation’s trading volume, though that is dwarfed by the approximately 70 percent market share controlled by TMX Group Ltd., which owns the Toronto Stock Exchange and other trading platforms.
...
The transaction also opens up the possibility of a stronger link between the U.S. and Canadian equity markets. Some corporations already trade on stock exchanges in both nations, including Nasdaq-listed companies like BlackBerry Ltd. In Tuesday’s statement, Nasdaq said the transaction would “enhance the trading experience for customers by promoting greater uniformity in technology and functionality across U.S. and Canadian trading venues.”