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TSX Group announces its intent to launch a new parallel, distinct order book that will operate alongside the TSX QuantumTM 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, highspeed, 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," said Thomas Kalafatis, Vice-President TSX Markets. "Specifically, TSX Photon will be based on a first-in first-out pricetime 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.
Toronto Stock Exchange 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.
As a specialized high-performance market, it will feature functionality to maximize speed and will:
- be based on our highly scalable TSX Quantum technology delivering trusted availability, high capacity and throughput at a low incremental capital cost
- leverage existing dealer connectivity on our Gateway, such that all Participating Organizations connected to our original central limit order book would have access to TSX Photon upon its launch
- offer a first-in first-out price time priority allocation
- provide full broker ID anonymity
- offer differentiated trading fees
TSX Photon is expected to increase accessible liquidity in all Toronto Stock Exchange-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.
About TSX Group Inc. (TSX-X)
TSX Group operates Canada's two national stock exchanges, Toronto Stock Exchange serving the senior equity market and TSX Venture Exchange serving the public venture equity market, Natural Gas Exchange (NGX), a leading North American exchange for the trading and clearing of natural gas and electricity contracts and Shorcan Brokers Limited, the country's first fixed income interdealer broker. TSX Group also owns The Equicom Group Inc., a leading provider of investor relations and related corporate communication services in Canada. TSX Group is headquartered in Toronto and maintains offices in Montreal, Calgary and Vancouver.
