TMX To Launch Alternative Equities Trading System
Friday, June 10, 2011

The Canadian stock exchange operator TMX Group has received regulatory approval for the launch of its alternative equities trading system, meaning the company can forge ahead with a start date in mid-July.

Approval was secured by TMX Select from both the Investment Industry Regulatory Organization of Canada and the Ontario Securities Commission. The system has been available for customer and industry testing since April, but this latest development, which TMX calls an important milestone, allows it to proceed with a planned launch date of July 11, 2011.

The system will charge liquidity seekers and liquidity providers the same nominal fee, imposing on both sides of a trade CAD0.0002 per share for stocks priced CAD1 and over, and CAD0.0001 per share for stocks priced under CAD1. This “symmetrical pricing” is, according to TMX, significantly different from the standard maker-taker model currently maintained by Canadian marketplaces, and represents a cost saving opportunity for net liquidity takers.

Commenting on the future of TMX Select, Gary Knight, Vice President, Trading, TSX Markets and CEO of TMX Select, said: “We are very excited about bringing TMX Select to market in July and providing additional execution opportunities and choice for market participants, We are also introducing an innovative pricing model for TMX Select that further illustrates our commitment as a market leader in the Canadian marketplace.”

Knight added: “In launching TMX Select, we are supporting a platform that is different from what is being offered by Canadian and US visible marketplaces. The TMX Select pricing model equally recognizes the importance and value of both types of participants to the marketplace – the one that displays liquidity and is willing to wait and the participant that is willing to transact immediately.”