NZX Says AXE ECN To Be Wound Up
New Zealand exchange operators NZX Ltd will wind up its Australian subsidiary AXE ECN after deciding there is no market opportunity for the joint venture, the company said on Friday.
AXE ECN was set up in 2006 with the aim of providing a low cost electronic platform for large trades in the Australian market in a bid to challenge incumbent ASX Ltd .
While the company applied for an Australian market operator licence in 2007, last year Australian authorities said it was not pressing forward with its application.
“After a review and careful assessment of the market today, AXE does not see opportunities for its business model to generate sustainable economic returns and shareholders have therefore agreed to cease operations of the legal entity,” NZX said in a statement.
AXE ECN is a joint venture between New Zealand exchange operator NZX and six investment banks and brokerages: Citigroup , CommSec , Goldman Sachs , Macquarie Bank and Merrill Lynch .
As a result of the decision there would be a non-material payment to the joint venture partners, NZX said.