TSXPress is an innovative series of trading system enhancements aimed at optimizing execution speeds for algorithmic traders. Algorithmic trading, which involves the use of quantitative models to determine volume and order timing for a stock trade based on specific goals, is experiencing explosive growth on TSX. TSXPress builds on the success of the trading engine enhancements completed in 2005 that resulted in a doubling of trading engine performance. In the 2006 phase of TSXPress, TSX plans to introduce a series of dedicated trade processing servers and processes for the most actively traded stocks, which are aimed at further reducing response times by 50%. Work is scheduled for completion during Q3 2006. Subsequent TSXPress enhancements will be designed to result in market-wide improvements in messaging, execution and data feed speed. According to Parkhill, “Today we compete successfully for order flow with North American markets. We expect TSXPress to set a new benchmark for faster trading in North America.”
ATX (Alternative Trade eXecution) will be a new high-speed TSX trading facility that matches firm order flow against in-house interest as well as the undeclared interest of other market participants. It will be designed to further reduce the market impact cost of trading and facilitate best execution and risk management, with minimal latency. ATX is an expansion and evolution of the innovative FOX™ (Firm Order eXecution) application launched successfully by TSX in 2005. Parkhill maintains that ATX will be the most comprehensive solution to customer demand for dark liquidity matching. ATX provides customers of TSX markets synergies within the existing TSX trading book. “It satisfies the changing trading needs of our major clients and it further reinforces our commitment to provide innovative trading solutions to the marketplace. ATX will redefine what an exchange delivers to its participants and will further differentiate TSX from its North American competitors.”
TSX has a long tradition of leadership in high-technology trading and a record of success in anticipating the demands of marketplace participants.
Parkhill added, “We are creating a marketplace that embraces new forms of trading modalities, with new market features that make it easier and less costly to trade. There are challenges for market participants and we are committed to providing the marketplace with best of class solutions to compete effectively with exchanges across North America.”
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