Competing with the world’s biggest stock exchanges, Chi-X has become a successful global market disruptor since Chi-X Europe was first launched in 2007 by Instinet.
Shortly after Chi-X Europe’s launch, Instinet created Chi-X Global, bringing its alternative trading platform to more markets.
Chi-X Global established Chi-X Australia in 2011 – the first ever competitor to the Australian Stock Exchange.
Today almost 2000 ASX-listed stocks are traded on Chi-X. Recently the platform hit a record daily trading value of $3.4B.
At the helm of Instinet, when the company created Chi-X Europe and soon after Chi-X Global, was Australian tech entrepreneur Tony Mackay. He is widely considered to be the founder of the Chi-X phenomenon.
Since late 2017, Mackay has been working on a new project – the Chi-X of crypto trading – to be known as Kryptos-X.
“I’ve set up regulated stock exchanges in all corners of the world and I now want to take this into the crypto digital world,” said Mackay in an interview about the project.
Backing his vision is ASX-listed blockchain venture company FatFish Internet Group (ASX:FFG).
FatFish pumped US$1m into Mackay’s project, in return for a 27% stake.
Intially FatFish had hoped Kryptos-X would be operational early in 2018 but building a crypto exchange, based on the successful Chi-X model, has been more difficult than expected.
“While we are conscious of the need to get to market as soon as possible, it is preferable in the long term to work with regulators and accommodate new regulatory settings,” Mackay said today.
He now expects the cryptocurrency trading platform will be launched in Q3 2018.
“We are working with our partners to build a world class digital asset marketplace.
“We will ensure the Kryptos-X marketplace launches with a state-of-the-art platform that is robust, secure, compliant, liquid, efficient and can accommodate the rapidly evolving trading environment for digital assets,” he said.
While Chi-X began in Europe, Kryptos-X will launch first in Singapore – a country seen to be ahead of the game when it comes to cryptocurrency regulations.
This month Singapore’s Monetary Authority announced a consultation and review process to consider the creation of two new classes of regulated securities exchanges aimed at smaller operations than the Singapore Securities Exchange (SGX). The Kryptos-X team is engaging with the authority in the consultation process.
The Singapore Government has also tabled draft regulations to ensure best practice from Singapore based crypto exchanges, covering Anti Money Laundering and Know Your Customer protocols and practices.
While these moves may be halting Tony Mackay’s return to exchange disruption he says he welcomes the leadership of Singapore in clarifying their interpretation of the legal and regulatory status of cryptocurrencies.
The final key to his crypto success may be the growth of institutional involevement in cryptocurrency investing.
Brokers and institutional investors account for the majority of trading on Chi-X and it’s hoped they’ll enjoy purchasing cryptocurrencies for their clients on the Kryptos-X platform too.
Click here read more about FatFish Internet Group.