TSX Alpha Exchange announced Tuesday that it has received regulatory approval for the proposed new fee model that will take effect when Alpha’s new trading model launches on Sept. 21.
The new fee model accompanies various other changes to Alpha’s operations, including the introduction of speed bumps for certain orders and imposing a minimum size for posting passive orders. The revised fee structure will see Alpha adopt an inverted maker/taker model that will pay rebates for active order flow and charge fees for posting passive liquidity.
To encourage early adoption of the new Alpha trading model, the exchange is offering an introductory pricing program, with reduced posting fees. This program will end on Nov. 30, and Alpha’s full new fee structure will kick in at that point.
Other changes are also being made to the Alpha fee schedule to align certain fees with those charged by the other TMX equities markets, the exchange said in notice.
“For example, active fees for the auto-execution of odd lots on Alpha will be consistent with those charged on TSX to make it easier and more economical for participants to execute their odd lots on any TMX equities market,” the notice said.
The changes to Alpha come as part of a broader effort by Toronto-based parent company TMX Group Ltd. to reshape the Canadian equity trading landscape, by closing certain trading facilities, introducing new features, and revising its fee models.