Instinet I-X Limited, a subsidiary of global agency broker Instinet, today announced that it has received membership in the Investment Dealers Association (IDA) of Canada.
Instinet I-X Limited will operate ICX, a high-performance, fully anonymous and low-cost continuous alternative trading system (ATS) for equities listed on the Toronto Stock Exchange. The new platform, in which Instinet intends to offer equity stakes to strategic liquidity partners, will begin operation in Q4 of this year.
"By capitalization, the Canadian equities market is the sixth largest in the world, making it an extremely attractive market for investors around the globe," said Michael Plunkett, President of North America at Instinet. "Consequently, with ICX we intend to draw upon Instinet's deep-rooted experience in developing and operating ATS platforms to provide a new market model, which should lead to greater price discovery, increased liquidity and improved investor performance."
"We are confident that the Canadian marketplace is ready for an advanced platform like ICX," said Tal Cohen, Senior Vice President at Instinet. "By enforcing strict price-time priority and supporting a wide array of advanced order types, ICX should help the drive the adoption of algorithmic trading and direct market access strategies in Canada, which are helping to increase liquidity and market efficiency worldwide."
According to research and consulting firm TABB Group, algorithms are used nearly twice as often in Canada today - a 97% increase from 2005 - as they were two years ago. "There is no question; the Canadian marketplace is rapidly evolving. Greater electronic trading demands a different market structure," said Jeromee Johnson, Senior Analyst and Consultant with the TABB Group. "With the ongoing regulatory initiatives and the competition created with the entry of new venues, it's going to be an exciting and dynamic time for Canadian institutions."