TSX Group plans to launch a new parallel, distinct order book that will operate alongside the TSX Quantum central limit order book.

Internally codenamed TSX Photon, it will feature a differentiated market structure and pricing schedule optimized for high-velocity traders trading high-velocity symbols in a transparent auction market.

“Our TSX Quantum central limit order book will continue to deliver rich, high-speed, diverse functionality to address complex trading issues and to provide the deep liquidity that our customers have become accustomed to, while the TSX Photon marketplace will offer the core functions and market structure adaptations that are critical to high velocity strategies,” saus Thomas Kalafatis, vp TSX Markets.

“Specifically, TSX Photon will be based on a first-in first-out price-time priority allocation and provide full broker anonymity. It is the first alternative transparent order book offered by TSX Markets in response to strong demand from automated traders who execute high-velocity trading strategies and models designed specifically for a fragmented marketplace.” TSX Photon’s launch is subject to regulatory approval.

TSX would be the first exchange in the world offering parallel transparent market structures within one rule set, continuing a long history of innovation in the trading, listing and technology areas.

TSX Photon is expected to increase accessible liquidity in all TSX-listed high velocity symbols. TSX Photon is expected to launch in 2009 subject to regulatory approval and development of the TSX’s proprietary smart order router.