Nasdaq will acquire Chi-X Canada, an alternative trading system for Toronto Stock Exchange and TSX Venture Exchange securities, from Chi-X Global Holdings.
Terms were not disclosed. The acquisition is expected to close sometime in the first quarter, pending regulatory approvals.
Chi-X Canada handles about 22% of the order flow of S&P/TSX composite index securities in Canada, said Hans-Ole Jochumsen, president, global trading and market services, for Nasdaq, in a joint news release from Nasdaq and Chi-X Canada.
The acquisition will give Nasdaq its first direct trading presence in Canada.
Dan Kessous is expected to remain as Chi-X Canada CEO, and the Chi-X Canada staff will join Nasdaq.
Chi-X Canada will become part of Nasdaq's global trading and markets business, said Joseph Christinat, Nasdaq spokesman.
Chi-X Global will continue to run alternative trading systems in Australia and Japan. The company's original ATS, Chi-X Europe, was acquired by BATS Global Markets in 2011.