Sigma X Canada to begin trading Oct. 24

Goldman Sachs dark pool will offer trading in all equity securities listed on the TSX denominated in Canadian dollars

By: James Langton
October 17, 2011 October 17, 2011
16:10

The new dark pool being launched in Canada by Goldman Sachs, Sigma X Canada, will begin trading on October 24.

A notice from the Investment Industry Regulatory Organization of Canada indicates that Sigma X Canada will begin trading Canadian listed securities next week. The new trading system is a dark marketplace and will not provide any pre-trade transparency of orders but will provide full post-trade transparency of each execution.

Sigma X initially will offer trading in all equity securities listed on the Toronto Stock Exchange which are denominated in Canadian dollars. It will not offer trading in debentures or any equity security subject to special settlement terms.

Trading will take place during normal market hours, but it will allow orders to be posted beginning at 7:30 am ET, and all unexecuted orders will expire at 4:00 pm ET.

The new alternative trading system, which will anonymously match buyers and sellers and will offer guaranteed price improvement relative to the national best bid and offer, aims to attract liquidity from broker dealers, hedge funds and institutions, along with internal liquidity.