TMX Group Ltd. (TSX:X) has received Ontario Securities Commission (OSC) approval for changes to its TSX Alpha Exchange trading model, the exchange operator said Tuesday.
The changes are key elements of TMX Group’s recently announced proposal to reposition its equities trading platforms to meet evolving customer needs and strengthen Canada’s capital markets.
Set to launch in September, Alpha’s new trading model is designed to deliver superior execution quality and reduce trading costs for retail and institutional dealers.
Alpha features will include a minimum size threshold for liquidity-providing orders, competitive pricing for active flow and a short order processing delay (speed bump).
In addition, in response to feedback received from customers through the public comment process for the proposed changes, Alpha will operate as an unprotected market under the Order Protection Rule (OPR).
TMX Group says it is encouraged by announced regulatory efforts to re-examine the application of OPR to all marketplaces which impose order processing delays, and supports an approach to harmonize unprotected status across all speed bump markets.
“We are pleased to be moving forward with our planned amendments to the Alpha trading model, which have been further enhanced with client input,” said Kevan Cowan, president, TSX Markets and Group Head of Equities, TMX Group.
In October 2014, TMX Group announced proposed changes to the Toronto Stock Exchange (TSX), TSX Venture Exchange (TSXV), TMX Select and Alpha marketplaces aimed at improving the Canadian trading landscape and reducing market complexity.
TMX Group intends to close TMX Select as well as Alpha’s IntraSpread facility. In addition, key features and functionality will be harmonized across TSX, TSXV and Alpha to provide an improved user experience. These changes include eliminating the opening auction on Alpha and migrating Alpha to the TMX Quantum XA trading platform. These updates are planned in coordination with the expected launch of the approved Alpha model in September.