TMX Group Inc. and Citi today announced an agreement to provide Toronto Stock Exchange and TSX Venture Exchange participating organizations with a smart order routing solution powered by Citi’s Lava ColorBook® II technology. This smart order router will execute orders at various Canadian marketplaces seeking the best available prices.
ColorBook® II will provide customers a low-latency smart router that aggregates full depth market data feeds and provides a suite of special order types for accessing liquidity across multiple market centers.
Tom Kloet, CEO, TMX Group, said: “This agreement underpins our commitment to providing leading-edge, best execution solutions for our customers. After an exhaustive search for the right partner and right solution, we are delighted to work with Citi for the use of its innovative Lava ColorBook ® technology. We are looking forward to launching the ColorBook® II intelligent routing technology integrated with the TSX Quantum™ platform, and are confident it will provide our customers with exceptional performance and a competitive advantage in trade execution.”
By integrating ColorBook® II into its service offering, TMX Group is supporting customers looking to best utilize a multiple marketplace environment while retaining a centralized price-discovery mechanism through its smart order router offering. The evolving Canadian market structure represents tremendous potential for Lava’s first launch outside of the United States and for Toronto Stock Exchange and TSX Venture Exchange to support its customers in achieving their best execution needs.
Richard Evans, Head of Global Equities Electronic Execution at Citi, said: “We are confident that this first international partnership for ColorBook ® will provide TMX Group customers with superior execution and demonstrates the innovative, industrial-strength technology and trading solutions we are able to provide.”
Canadian smart order routing clients will also have the opportunity to benefit from additional functionality available on ColorBook® II, including improved access to hidden liquidity, enhanced price improvement opportunities, expanded algorithmic connectivity, increased execution efficiency and minimized market impact.
This integrated platform with Canadian smart order routing functionality is expected to be introduced in the fourth quarter of 2008.
