ATS platform to launch in Q4 2007, bringing to Canada a new market model
focused on providing a high-performance, fully anonymous and low-cost
alternative for trading TSX(R)-listed equities.
TORONTO, June 11 /CNW/ - Instinet I-X(SM) Limited, a subsidiary of global
agency broker Instinet, today announced that it has received membership in the
Investment Dealers Association of Canada. Instinet I-X Limited will operate
ICX(SM), a high-performance, fully anonymous and low-cost continuous
alternative trading system (ATS) for equities listed on the Toronto Stock
Exchange. The new platform, in which Instinet intends to offer equity stakes
to strategic liquidity partners, will begin operation in Q4 of this year.
"By capitalization, the Canadian equities market is the sixth largest in
the world, making it an extremely attractive market for investors around the
globe," said Michael Plunkett, President of North America at Instinet.
"Consequently, with ICX we intend to draw upon Instinet's deep-rooted
experience in developing and operating ATS platforms to provide a new market
model, which should lead to greater price discovery, increased liquidity and
improved investor performance."
"We are confident that the Canadian marketplace is ready for an advanced
platform like ICX," said Tal Cohen, Senior Vice President at Instinet. "By
enforcing strict price-time priority and supporting a wide array of advanced
order types, ICX should help the drive the adoption of algorithmic trading and
direct market access strategies in Canada, which are helping to increase
liquidity and market efficiency worldwide."
According to research and consulting firm TABB Group, algorithms are used
nearly twice as often in Canada today - a 97% increase from 2005 - as they
were two years ago. "There is no question; the Canadian marketplace is rapidly
evolving. Greater electronic trading demands a different market structure,"
said Jeromee Johnson, Senior Analyst and Consultant with the TABB Group. "With
the ongoing regulatory initiatives and the competition created with the entry
of new venues, it's going to be an exciting and dynamic time for Canadian
Operated by Instinet I-X(SM) Limited, member NASD/SIPC, ICX is a
high-performance, fully anonymous and low-cost continuous alternative trading
system (ATS) for TSX-listed equities. Supporting a wide array of advanced
order types and based on strict price-time priority, ICX aims to provide
trading efficiency and cost savings to investors and ultimately help spur
ICX, which is based on the same underlying technology that powers
Instinet CBX(SM) in the U.S., Chi-X(R) in Europe and JapanCrossing(SM) in
Asia, has an internal latency of less than one millisecond, or 1/1,000th of a
Available to any IDA-regulated investment dealer with membership in good
standing in Ontario and accessible to members through the Financial
Information Exchange (FIX), ICX will disseminate market data via third-party
market data vendors at no cost. Additional pricing information will be made
available before its Q4 2007 launch. For more information, please visit
(*) Internal latency, which is the system's ability to process messages in
its core rather than the roundtrip measurement, was measured by Instinet to be
890 microseconds, or less than one millisecond. Market volatility and volume
may affect actual performance.
Instinet, through its subsidiaries, acts as a global agency broker,
providing the trading expertise and advanced technology necessary to
successfully interact with more than 50 securities markets worldwide. Acting
solely as an agent for its customers, Instinet seeks to improve institutional
investment performance and lower overall trading costs through its various
front-end trading systems, securities crossing networks, algorithms,
commission management programs and investment research products. The company,
which is a wholly-owned subsidiary of Nomura Holdings, Inc., is headquartered
in New York and maintains offices in North America, Europe and the Asia
Pacific region. For more information, please visit www.instinet.com. Instinet
conducts its U.S. institutional brokerage business primarily through Instinet,
LLC, member NASD/SIPC, and currently conducts its Canadian institutional
brokerage business through Instinet Canada Limited, member IDA/CIPF.
(C)2007 Instinet, Incorporated. All rights reserved. INSTINET is a
registered service mark in the United States and in other countries throughout
For further information:
For further information: Instinet Mark Dowd, Corporate Communications