The alternative trading system MATCH Now is proposing to introduce a new order type, and to change how it handles anonymous orders.

According to Friday’s OSC Bulletin, the ATS is planning to introduce a midpoint only order type, which will allow liquidity providers the option to trade only at the midpoint, both with other liquidity providing orders and with marketflow orders. The notice indicates that this new order type is being introduced to address customer demand, and that the option to always trade at the midpoint will reduce market impact resulting from post-trade information.

MATCH Now, which is operated by TriAct Canada Marketplace LP, also plans to change the handling of anonymous orders so that they are first matched with the same broker’s order flow before executing with other brokers. It says that the benefit of allowing anonymous order flow to match within a broker’s own order flow is a reduction in execution fees for the ATS’ subscribers.

Comments on the proposed changes are due by July 9, and, if they don’t raise any regulatory concerns, it may implement them by July 26.

IE