Market participants in Europe and the US can now trade on the Toronto Stock Exchange (TSX) via a direct, low-latency link, following a deal between Canadian exchange group TMX and trans-Atlantic connectivity provider Hibernia Atlantic.
TMX's use of Hibernia's Global Financial Network (GFN) is intended to offer secure, direct connections from the Toronto Stock Exchange (TSX), TSX Venture Exchange and the Montreal Exchange to key financial centres outside Canada.
The GFN consists of 24,000 kilometres of submarine fibre-optic cable, and can provide round-trip latency of less than 10 milliseconds from Toronto to Newark/New Jersey. Hibernia GFN can also link from Canada directly to the UK and Europe, bypassing the US entirely, to the advantage of companies that require fast capacity for automated trading.
The move follows the introduction of new non-displayed order types on TSX earlier this month, as well as the launch of a new high-speed matching engine for Canadian alternative trading venue Omega ATS in June, for stocks listed on TSX.