In preparation for the upcoming launch of the TSX Quantum Revolution, TSX Group Inc. today provided details on changes to the trading fee models on both Toronto Stock Exchange and TSX Venture Exchange, which were announced on July 25.

“TSX Quantum is more than a trading engine,” said Rik Parkhill, president, TSX Markets, in a news releaer. “It is a revolutionary way of thinking about trading and how the securities industry will operate going forward. TSX Quantum presents both an opportunity and a challenge for market participants as they prepare for these unprecedented changes. We want to ensure global participants and active traders are incented to take full advantage of TSX Quantum’s increased capacity, throughput and response times.”

Revisions to the trading fee models for issues listed on Toronto Stock Exchange and TSX Venture Exchange will be effective November 1. Details of the new fee schedule are posted on tsx.com.

The revisions will reduce the effective round-trip fee spread for trading on the Toronto Stock Exchange central limit order book by up to 40%, further align the credit for liquidity model of TSX Venture Exchange with Toronto Stock Exchange, align the fees of lower priced and higher priced securities on Toronto Stock Exchange and TSX Venture Exchange, and reduce fees and further discount the cross printing facility. Toronto Stock Exchange will also be adjusting prices for certain order types including Icebergs, where executed volume is not visible to the marketplace.

“We are revising trading fees as part of our strategy to enhance TSX Group’s competitive position as the central point of liquidity for Canadian equities,” said Parkhill. “We continuously innovate while maintaining competitive prices targeted at attracting more market participants and increasing trading activity.”

Given that many of the changes will be structured to improve liquidity, it is expected that the impact of the proposed changes will be to improve TSX Group’s competitive position in North America. Based on historical trading activity, patterns, and product mix, changes to the trading fee structure could reduce TSX Group’s trading and related revenue by approximately $7 to $10 million on an annual basis if offsetting benefits, including increased volumes, are not realized. However, actual trading revenue will depend on future trading activity, patterns and product mix.

Since moving to a volume-based trading fee model on July 1, 2006, volumes traded on Toronto Stock Exchange and TSX Venture Exchange have increased by almost 20% over the one year period prior to the change.