TMX Group, operator of multiple Canadian equities marketplaces, has launched a new trading model of the TSX Alpha Exchange.
The new model’s goal is simple, improve buyside execution quality and reduce broker-dealer costs.
Alpha’s new features, which received Ontario Securities Commission approval in April, include a minimum size threshold for liquidity-providing orders, competitive pricing for active flow and a short order processing delay (a type of speed bump). In addition to these changes, Alpha was migrated to TMX Group’s high performance equity trading engine, TMX Quantum XA.
Se Also:NEO Exchange’s Schmitt Says Not All Trading Speed Bumps Are Created Equal
Also, the opening auction on Alpha has been eliminated and Alpha’s IntraSpread facility and TMX Select have now ceased operation.
All changes came into effect at the open of the markets on Monday, September 21.
“We are committed to strengthening our client relationships and pushing forward with solutions to meet their needs,” said Nick Thadaney, president and CEO, global equity capital markets, TMX Group. “The new Alpha trading model is the product of vital and ongoing consultation with, and feedback from, our broad group of industry stakeholders. We continue to actively seek out ways to enable our clients to be more successful and enhance the attractiveness of Canada’s markets.”
In October, 2014, TMX Group announced it was restructuring its equities trading offering in an effort to retain Canadian order flow, empower natural investors and other non-latency sensitive participants to trade with confidence and to reduce market complexity. The next step in this series of targeted changes is the introduction of TSX’s Long Life order type, which is scheduled for November 16, 2015.
TMX Group operates the Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange, The Canadian Depository for Securities, Montreal Exchange, Canadian Derivatives Clearing Corporation, NGX, BOX Options Exchange, Shorcan, and Shorcan Energy Brokers. It is headquartered in Toronto and operates offices across Canada (Montreal, Calgary and Vancouver), in key U.S. markets (New York, Houston, Boston and Chicago) as well as in London, Beijing, Singapore and Sydney.
