Alternative trading system Omega ATS is planning to introduce iceberg orders in an effort to keep pace with other market venues.
Thursday’s OSC Bulletin includes a notice indicating that Omega intends to introduce an iceberg order type, which will allow its subscribers to enter the full quantity of their limit order, but only exposes a fraction of the full order to the market (minimum one board lot). The order will refresh automatically until the full quantity of the order is completed.
According to the notice, Omega is undertaking this project at the request of its subscribers. It says the majority of subscribers now consider the ability to use iceberg orders to be part of the basic functionality of a modern trading venue.
“All other open outcry marketplaces in Canada have the ability to maintain the iceberg type of trade; over the last decade it has become part of the standard suite of trading tools,” it notes. “It is in fact more of a threat to the good functioning of the market, and to our clients for Omega not to offer this function.”
Comments on the proposal are due by May 7.