In the wake of regulators granting approval for alternative trading system Alpha Group to operate an exchange, they have also given TSX Inc. permission to trade securities listed on other exchanges.

In Friday’s OSC Bulletin, the Ontario Securities Commission reports that it has approved amendments to the Toronto Stock Exchange rules to permit trading in securities that are not listed by the TSX. It says the changes will allow the TSX “to leverage its trade execution strength in the event that it determines to trade securities that are listed by another Canadian exchange.”

For example, it notes that the TSX may determine that it would be beneficial to brokers, investors, and others to trade securities on TSX that are listed by Alpha Exchange Inc. “If such decision is taken by TSX, appropriate notice will be given to market participants so that there is no confusion in the market regarding the securities being traded on TSX,” it says, adding that the TSX will only provide market-making functionality for securities listed on its own exchange.

The TSX intends to make the amendments effective in early 2012, it adds.