Canadian exchange group TMX Group, operator of the Toronto Stock Exchange (TSX), plans to create a new alternative trading system (ATS) for equities, called TMX Select, to regain market share previously lost to rival venues such as Chi-X Canada, Alpha and Omega ATS.
The new trading system – scheduled to go live in Q2 2011 – will operate on TMX Group's TSX Quantum trading platform, with functionality and pricing models distinct from TSX and TSX Venture Exchange. Kevan Cowan, president of TSX markets and group head of equities, told theTRADEnews.com that the group intends for TMX Select to recapture business through targeting pricing and a streamlined offering.
“TMX Select will provide multiple benefits to market participants, including a new source of liquidity, innovative pricing and the leading technology in Canada,” said Cowan. “And because clients will be able to access this new order book using their existing TSX connectivity, TMX Select will provide all of these benefits with minimal cost and effort.”
Other key TMX Select features include expanded trading hours, a simplified trading structure with continuous trading of board lots only and no special terms for brokers, as well as strict price-time priority for visible orders.
“The equities landscape is evolving extremely quickly. We believe there's a great opportunity to appeal to different customers through multiple platforms. TMX Select is being created with a nimble market structure to allow for aggressive innovation designed to meet rapidly-evolving client needs,” added Cowan.
The new platform's trading policy manual, including all trading rules and order feature details, will be made available for public comment prior to the launch of TMX Select.
The announcement follows the installation of direct low-latency links between the Toronto exchange and overseas destinations including the UK, Europe and the US, via trans-Atlantic connectivity provider Hibernia Atlantic in September 2010.
According to Thomson Reuters, TSX currently has a market share of 66%, while Alpha and Chi-X Canada hold 17% and 11% respectively.