CHI-X Australia is an alternative trading venue to ASX to which many brokers, including Interactive Brokers and Commsec connect and route trades.
Unlike the ASX however, CHI-X does not have an opening or closing auction.
It has become apparent in the recent weeks that orders that are routed through CHI-X are getting extremely poor fills. Personally in the last 2 days I have been filled outside the ASX trading range, once in my favour and once against me. Today I had a sell order placed for the opening auction that was filled 5.3% below the days open auction price because it was routed via CHI-X.
It has also happened to a few others, and it appears their experience has been negative and outside ASX trading ranges.
As a result I will now be routing my orders only through ASX. This is an option when using Interactive Brokers (select ASX rather than SMART).
You may wish to check with your broker as to whether or not you you can deselect the CHI-X option.
