TMX Group Inc. has submitted regulatory filings to create a new alternative trading system (ATS), the company said Monday.

TMX Group owns the Toronto Stock Exchange, which is Canada’s best-known and biggest securities market. TSX has seen increased competition from alternative trading systems operated by Alpha Group and Omega ATS

TMX Select, which is expected to launch in the second quarter of 2011, will offer a visible marketplace for trading equity securities. The new trading system will operate on TMX Group’s(TSX:X) high-performance TSX Quantum trading platform, with functionality and pricing models separate and distinct from TSX and TSX Venture Exchange.


“TMX Select will provide multiple benefits to market participants, including a new source of liquidity, innovative pricing and the leading technology in Canada,” says Kevan Cowan, president TSX Markets and group head of equities. “And because clients will be able to access this new order book using their existing TSX connectivity, TMX Select will provide all of these benefits with minimal cost and effort.”

In addition to seamless connectivity for existing clients and competitive pricing, key TMX Select market features include: expanded trading hours, providing additional opportunities to execute trades; a simplified market structure with continuous trading of board lots only and no special terms; and strict price-time priority for visible orders.

“TMX Select is being created with a nimble market structure to allow for aggressive innovation designed to meet rapidly-evolving client needs,” adds Cowan.

TMX Group’s commitment to marketplace transparency will continue with its new ATS. As it has long advocated for all ATSs, the complete Trading Policy Manual, including all trading rules and order feature details, will be made available for public comment prior to the launch of TMX Select.

IE