This development represents the next piece of the puzzle as we embark on delivering a comprehensive wealth creation platform. SelfWealth members may now access a range of new securities via Chi-X trading, while also potentially realising better trading outcomes across familiar ASX stocks.
Here’s more information on Chi-X, including common questions below.
What is Chi-X?
Launched in 2011, Chi-X Australia is an alternative trading platform and stock exchange for Australian securities, providing efficient and cost-effective access to opportunities both home and abroad.
Chi-X is an ASIC-regulated market operator for executing trades, including ASX stocks, ETFs, and a range of other products like warrants and hybrids. Originally limited to just eight stocks when it first went live, Chi-X now offers access to trade the full suite of ASX-listed shares.
The venue accounts for around one-fifth of trading volume in Australian securities, with more than $3.8 billion in cash equities trading hands every day.
As an established market operator with a worldwide presence, Chi-X also runs trading venues across Europe, Asia and North America. It was recently acquired by the third-largest US exchange operator, Cboe Global Markets, bringing a new level of competition to the local share market.
How do retail investors benefit from Chi-X?
Much like when SelfWealth disrupted the retail broker scene with the first CHESS-sponsored, flat-fee brokerage model, Chi-X represents a level of disruption and competition across an industry that has long been viewed as a monopoly.
To date, Chi-X has already helped drive down execution costs within the industry, something that originally allowed SelfWealth to offer low-cost brokerage to our members.
However, with Chi-X trading now integrated into the SelfWealth share trading platform, there are potential benefits for members as far as greater liquidity, superior pricing opportunities, plus the prospect of future product developments.
What can I trade via Chi-X?
Not only does Chi-X provide access to the thousands of Australian securities that you are likely to already be familiar with, but as an alternative stock exchange it also offers trading in a number of unique products as well. Through Chi-X you may trade any of the following:
- 2,000+ ASX-listed stocks
- Chi-X specific ETFs
How do I trade through the Chi-X?
The best part about the integration of Chi-X trading into the SelfWealth share trading platform is that it all happens effortlessly behind the scenes, and in keeping with the CHESS framework. You do not need to apply for access to Chi-X.
In accordance with the Best Execution Policy of our partner and market participant OpenMarkets, we will endeavour to realise the best possible price for your trades. This means that we may automatically route part or all of your order to Chi-X for execution if a superior price is available.
All stocks bought through Chi-X settle via your SelfWealth CHESS HIN as per normal. This is because the ASX still oversees clearing and settlement, whereas Chi-X provides an alternative trading venue. As a result, you can sell shares bought via Chi-X on the ASX, and sell shares bought via the ASX through Chi-X.
With these assurances, SelfWealth members should feel confident the introduction of Chi-X trading may help you realise better trading outcomes.
What other differences exist between Chi-X and the ASX?
Since the ASX and Chi-X are separate trading venues, prices for the same stock can vary between the two. However, given arbitrage opportunities and the prevalence of high-frequency trading by institutions, these gaps tend to draw greater trading liquidity and move closer to alignment.
What’s more, Chi-X is a day-only trading venue, so orders cannot be left in the market overnight. This may help orders reach the front of the queue sooner than they might on the ASX.
Unlike the ASX, there is no pre-market ‘match’, nor are there auctions for ASX-listed equity products traded via the Chi-X as participants cannot enter orders into this venue during the pre-market stage, and trading runs continuously from 10:00 am to 4:13 pm Sydney-time.
If you have any questions, please visit help.selfwealth.com.au for a quick answer.
If you want to talk to us directly, you can get us on live chat during trading hours or email us at firstname.lastname@example.org.
SelfWealth Ltd ACN 52 154 324 428 (“SelfWealth”) (Australian Financial Services Licence Number 421789). The information contained on this web site is general in nature and does not take into account your personal situation. You should consider whether the information is appropriate to your needs, and where appropriate, seek professional advice from a financial adviser. Taxation, legal and other matters referred to on this website are of a general nature only and should not be relied upon in place of appropriate professional advice.