TMX Group Inc. and Citigroup Inc. today announced an agreement to provide Toronto Stock Exchange and TSX Venture Exchange participating organizations with a smart order routing solution powered by Citi’s Lava ColorBook II technology. This smart order router will execute orders at various Canadian marketplaces seeking the best available prices.

ColorBook II will provide customers a low-latency smart router that aggregates full depth market data feeds and provides a suite of special order types for accessing liquidity across multiple market centers.

“This agreement underpins our commitment to providing leading-edge, best execution solutions for our customers. We are looking forward to launching the ColorBook II intelligent routing technology integrated with the TSX Quantum platform, and are confident it will provide our customers with exceptional performance and a competitive advantage in trade execution,” stated Tom Kloet, CEO, TMX Group.

The evolving Canadian market structure represents tremendous potential for Lava’s first launch outside of the United States and for Toronto Stock Exchange and TSX Venture Exchange to support its customers in achieving their best execution needs.

Canadian smart order routing clients will also have the opportunity to benefit from additional functionality available on ColorBook II, including improved access to hidden liquidity, enhanced price improvement opportunities, expanded algorithmic connectivity, increased execution efficiency and minimized market impact.

This integrated platform with Canadian smart order routing functionality is expected to be introduced in the fourth quarter of 2008.