TMX Group today announced that it has submitted regulatory filings to create a new alternative trading system (ATS).
TMX Select, which is a wholly-owned subsidiary of TMX Group, will offer a visible marketplace for trading equity securities. The new trading system will operate on TMX Group's high-performance TSX Quantum trading platform, with functionality and pricing models separate and distinct from Toronto Stock Exchange and TSX Venture Exchange.
"TMX Select will provide multiple benefits to market participants, including a new source of liquidity, innovative pricing and the leading technology in Canada," said Kevan Cowan, President TSX Markets and Group Head of Equities. "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."
In addition to seamless connectivity for existing clients and competitive pricing, key TMX Select market features include: expanded trading hours, providing additional opportunities to execute trades; a simplified market structure with continuous trading of board lots only and no special terms; and strict price-time priority for visible orders.
"TMX Select is being created with a nimble market structure to allow for aggressive innovation designed to meet rapidly-evolving client needs," added Cowan.
TMX Group's commitment to marketplace transparency will continue with its new ATS. As it has long advocated for all ATSs, the complete 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, which is expected to occur in Q2 2011. More information about pricing and functionality will also be communicated to market participants in the coming months.