Alpha, the alternative trading system (ATS) launched last Friday by a consortium of Canadian brokers, grabbed 36.24% of overall volume in ten blue-chip Canadian stocks on its second day of trading.
Alpha achieved 10% of total volume across the ten securities in which it offers trading on its first day. The ATS is backed by nine brokers, but approximately 30 market participants were connected at launch.
“Volume and value traded are key success indicators but what struck us most today was liquidity,” said Jos Schmitt, CEO of Alpha Group. “Throughout the day, Alpha was often showing the greatest liquidity at equivalent or better bid and ask spreads than other market places, despite the fact that many dealers are still ramping up their capabilities to trade on Alpha. This gives us a glimpse about what is to come and tells us where investors will need to look for price discovery and efficient execution.”
Alpha Group was established in May 2007 by BMO Capital Markets, Canaccord Capital Corporation, CIBC World Markets, CPP Investment Board, Desjardins Securities, National Bank Financial, RBC Capital Markets, Scotia Capital and TD Securities.