TMX Select, the high-frequency trading platform operated by Canadian exchange group TMX, has grabbed 1.4% market share during its first five months of 2012, trading an average of 11.4 million shares per day.
The platform is TMX Group's alternative trading system designed specifically for high-frequency traders that launched a year ago. The trading venue currently has 81 members and achieved an all-time record of 25.3 million shares on 22 March 2012.
TMX Select uses a symmetrical pricing model that charges liquidity takers, a structure which it says is designed to offer savings to those that remove liquidity from the order book. It is designed around a simplified market structure with continuous trading of board lots only, no special terms such as rebates, a strict price-time priority for all orders and expanded trading hours, from 08.00 to 17.00; in addition, it operates without market makers.
“We are proud to celebrate this significant milestone,” said Gary Knight, vice president, trading, TSX markets and CEO of TMX Select. “TMX Select offers unique trading features and we’re pleased that over the past year our customers have benefitted from the choice our marketplace provides.”
TMX Select accounted for 1.72% market share in June – exactly the same as May, according to figures provided by Thomson Reuters. TMX’s main market, the Toronto Stock Exchange, accounted for 62.84% market share, slightly up from 61.25% in May, while Alpha Trading held 15.74%, down from 16.47% the previous month. Alternative trading system Chi-X Canada held 11.68%, also down from 12.64% the previous month.
TMX Group is currently the subject of a takeover bid by Maple Group, a consortium of Canadian banks, with regulatory approval for the deal recently granted by Canada's competition authorities. Once the deal is concluded, Maple Group intends to unite TMX with Alpha Trading, and the Canadian clearer CDS to create a single integrated trading and clearing group. However, some market observers have expressed concerns that the deal could leave Canada’s equity markets vulnerable to monopolistic behaviour by the united exchange group.
Reports have claimed that once the Maple deal has been approved by shareholders, TMX will pursue the purchase of US stock exchange Direct Edge, with some suggesting that early talks over a possible acquisition are already under way. Neither TMX nor Direct Edge have confirmed the talks.