Aspiring global exchange operator Chi-X's Australian, Hong Kong and Japan businesses have been sold to US private equity firm JC Flowers & Co, completing an exit by the investment banks that started new trading venues around the world to counter -profit-making incumbents.
Chi-X Japan, and Australia, as well as the Chi-Tech business in Hong Kong, will continue to -operate but under a financial -operator that wants the business to grow from its existing base as a broker-owned utility. 
It is the second sale by Chi-X Global after its Canadian business was sold to US market operator Nasdaq in   December for an undisclosed sum.
No price was given for the sale to JC Flowers, but all four businesses were reported in   May to be worth as much as $US400 million -($569.5m).
Chi-X's owners, which include majority founder Nomura, JPMorgan, UBS and Goldman Sachs started a sale process after receiving an unsolicited approach, said to have been from Singapore Exchange. Chi-X -Europe was sold to BATS Global exchange in 2011.
Chi-X Australia chief executive John Fildes said it would be business as usual for the local market operator, which is estimated to have about 11 per cent of trading in Australian stocks after more than four years in business.
"It is great that we have got a new owner with deep pockets who is willing to invest in the -business," he said. "They obviously believe in the potential of the disruptive financial market business that we have built." The upstart exchange opened its doors in Australia in 2011 and devastated incumbent operator ASX Limited's equity market revenues by forcing the exchange to cut trading fees at a time when volumes and values were still -falling in the wake of the global -financial crisis.
Chi-X has since launched -trading in single-stock and index warrants as it seeks to grow revenues and product ranges and has led a push for the ASX to be stripped of its monopoly equity clearing and settlement business.
The ASX has offered to cut fees and share volume benefits with users if its monopoly is -extended by another five years and is awaiting a delayed decision by financial market regulators.
Mr Fildes denied the change in ownership would have any -implications for the way the company operates, saying he wanted to work with brokers on developing new products to grow fees. "We have no intention to dramatically increase trading fees overnight," Mr Fildes said.
Chi-X turned marginally profitable in 2015, swinging to a $51,173 profit from a $3.5m loss as revenue jumped by two-thirds to $9.5m after including the first full year of revenue from selling its market data to other -financial markets players.
In   September, brokers OpenMarkets, Shaw and Partners, and Morgans joined the Chi-X -market, taking its connected firms to 37 since   October 2011. The arrival of competing markets required brokers to connect to both -exchanges in order to provide best execution of trades to their clients.
There were exemptions for firms who could not justify the technology spending to upgrade their systems for the change and disclosed this to their clients.
Tal Cohen, chief executive of Chi-X Global, said the new owners shared its vision of leveraging technology to develop innovative market-level solutions that enhance investor performance.
New York-based JC Flowers, which boasts former Westpac chief executive David Morgan as a London-based adviser, focuses on global financial services -investments. Its managing director Thierry Porte, said Chi-X had established itself as an innovative and successful alternative to primary exchanges.
"We hope to accelerate this growth through continued -enhancements to the platform, including new investment -products and markets."John Durie P31