A Dark Pool for the Retail Investor
TORONTO, June 16 /CNW/ - Alpha Group today announced that its Dark Pool, the Alpha IntraSpread(TM) will be available for trading as of June 20, 2011.
This facility, which is available for all securities traded on Alpha, will allow all Alpha Subscribers to match immediately tradable orders with dark orders resting on Alpha. Alpha IntraSpread(TM) trades are published in real time.
Upon a trade, the immediately tradable orders will benefit from a guaranteed price improvement. Moreover, active fees for these orders will be minimal ($0.0004 per share for securities with a value greater or equal to $1 and $0.0001 per share for securities with a value below $1) while trade size for these orders will be maximized by the size favoring component of the IntraSpread(TM) matching algorithm as such minimizing back-office processing costs for the broker. Only retail order flow is eligible to access the Alpha IntraSpread(TM) facility with immediately tradable orders.
Dark orders can be posted by all Subscribers for any type of flow. These orders are fully hidden and pegged to the National Best Bid or the National Best Offer with a price improvement of either 10% (capped to one price tick) or 50% (mid-point). No rebates are available for these orders and no fees need to be paid. The benefit for liquidity providers using these dark orders is the ability to access un-intermediated retail flow, thus allowing them to reduce their adverse selection costs. Buy-side traders using these dark orders are being provided with access to a new liquidity pool, in addition to the upstairs market and the lit markets.
"Using the Alpha IntraSpread(TM) is a winning strategy for retail investors and retail brokers with immediately tradable orders" noted Jos Schmitt, CEO of Alpha Group. "Buy-side firms and liquidity providers are also provided with a winning strategy by allowing them to interact only with clean retail flow. This is what enables them to propose prices for execution that are better than the National Best Bid and Offer as available across all lit Canadian marketplaces. The Alpha IntraSpread(TM) is another example of the innovative thinking Alpha stands for and of our commitment to continuously improving the quality of execution in Canada."
About Alpha Group - Alpha Group comprises the leading Alternative Trading System for Canadian Securities - Alpha ATS, and a data distribution plant for Alpha ATS market data. Alpha Group was established in May, 2007 by nine of Canada's leading financial institutions with the aim of increasing the country's securities trading efficiencies and making the Canadian marketplace more globally competitive. Established for the Industry, by the Industry, the Alpha Group focuses on increasing liquidity, reducing the cost of trading and providing innovative services leveraging its unique expertise, operating model and technological capabilities.
For further information regarding Alpha Group, visit www.alpha-group.ca.
SOURCE Alpha Group
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