Exchanges

Toronto attracts high-frequency traders with co-location offering

Members of the Toronto Stock Exchange can now co-locate their trading applications in the exchange operator's TMX data centre, in a bid from the exchange group to tap into the growing high-frequency trading market.

According to TMX Group, which runs the Toronto exchange, co-location will reduce response times, as well as improving access both to cash and derivatives markets.

"With this expansion, we are positioning TMX Group as the single point of access for clients who require speed, value and access to the full portfolio of cash and derivatives trading," commented Tom Kloet, CEO at TMX. "Our focus is on the development and expansion of highly-liquid, neutral and transparent markets and we are working hard to fulfill this mission.

To cope with the growth in high-frequency multi-asset trading, TMX Group has entered into a new lease to increase the size of its facilities. Construction has begun to prepare the new space, which is designed to accommodate up to 200 co-location spaces, for a predicted launch in 2010.

TMX Group clients include members of the Toronto Stock Exchange, TSX Venture Exchange and Montreal Exchange, all of which will be able to co-locate their trading systems with the TSX Quantum and MX Sola trading engines and TMX Datalinx market data products.

"TMX Group is making this investment because we must be competitive on the world stage, with offerings that can go head-to-head with the world's largest exchanges and marketplaces,” added Kloet.