17th Annual Canadian Security Traders Conference, WHISTLER, BC, Aug. 13 /CNW/ - Alpha Group today announced, subject to regulatory approval, the fee structure for its new trading mechanism - the Alpha IntraSpread(TM) facility.
For trades taking place in the Alpha IntraSpread(TM) facility, Alpha will charge its fees on a net basis i.e. there will be no fee determined by Alpha for the active side of the trade, nor a rebate for the passive side of the trade:
- For securities with a price less than $1, the net fee will be 1 mils
($0.0001) per share traded; and
- For securities with a price greater than or equal to $1, the net fee
will be 2 mils ($0.0002) per share traded.
The net fees Alpha will charge for trades taking place in its IntraSpread(TM) facility are at least 50% lower than the net fees charged by any other Canadian marketplace (with the exception of trades subject to preferential fees at the TMX - benefitting select dealers only - for which the savings would be lower).
Based on an expected launch during the month of November 2010, Alpha will apply a fee holiday (i.e. net fee equal to $0) on the IntraSpread(TM) facility until March 1st, 2011.
"The IntraSpread(TM) facility will bring the Industry to a whole new level of savings on trading fees and, anticipating larger fills within this facility, it will also significantly reduce back-office processing costs", noted Jos Schmitt, CEO of Alpha Group. "It will be particularly beneficial to the retail brokers, as well as the small- and medium size dealers - the ones who are today impacted the most by market structure changes. Furthermore, when trading in the IntraSpread(TM) facility, dealers can guarantee their clients a price improvement versus the National Best Bid and Offer for each immediately tradable order. Buy-side and Liquidity Providers will have a new pool of liquidity they can access. A 'win-win' for the Industry, enabled by Alpha's unique business model."
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.alphatradingsystems.ca.
SOURCE Alpha Group
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