TORONTO, Oct. 29 /CNW/ - TMX Group Inc. (TSX:X) today announced a series
of changes to its fee schedule for equity trading, as well as a new Electronic
Liquidity Provider (ELP) incentive program for Toronto Stock Exchange (TSX).
These changes are intended to enhance trading activity and liquidity on TSX
and TSX Venture Exchange and to provide cost savings for all marketplace
participants. "As Canada's primary source of liquidity for equities, we are
focused on providing the trading community with a highly efficient marketplace
characterized by competitive fees, high performance technology, and ease of
access to our marketplace," said Kevan Cowan, President TSX Markets and Group
Head of Equities.
Changes to the equity trading fee schedule are a continuation of TMX
Group's ongoing efforts to incent liquidity providers and reduce the overall
cost of trading Canadian equities. The fee schedule changes, effective January
1, 2009, will increase liquidity-providing credits for all market participants
and reduce the spread between the active fee and passive credit for 90% of
market participants. Registered market makers, including Exchange Traded Fund
(ETF) market makers, also benefit from a guaranteed $0 fee cap per trader and
increased liquidity-providing credits. Furthermore, revised pricing models for
ETF trading, Specialty Priced Crosses, and Must Be Filled trades are based on
customer feedback and will promote trading growth in these areas.
Given that many of the changes are structured to respond to customer
needs, it is expected that the impact of the proposed changes will be to
improve TMX Group's competitive position in North America. Based on historical
trading activity, patterns and product mix, changes to the trading fee
structure could reduce trading fees by approximately $11 to $14 million on an
annual basis if offsetting benefits, including increased volumes, are not
realized. However, actual trading fees will depend on future trading activity,
patterns and product mix.
The ELP program offers aggressive fee incentives to experienced
high-velocity traders using proprietary capital and passive electronic
strategies on the TSX Central Limit Order Book. "TSX is committed to retaining
its position as the central point of price discovery in Canada," said Robert
Fotheringham, Senior Vice President, Trading. "We are confident that the
participation of ELPs will benefit investors, traders, and issuers alike by
tightening spreads, reducing friction costs and increasing overall turnover.
We also look forward to attracting significant liquidity from outside of
Canada and to further entrenching TSX's role as a global market centre."
"The ELP program is very competitive from a global perspective and offers
great incentives for high-velocity liquidity providers to post quotations. It
was a major factor in our decision to trade in the Canadian market," said Dave
Cummings, Chairman of Tradebot Systems Inc., one of the largest specialized
liquidity providers in the United States.
Sergei Tchetvertnykh, co-CEO of Infinium Group, one of TSX's most active
traders, said: "Infinium is looking forward to participating in the TSX ELP
program. The quality and liquidity on TSX will be enhanced through the
participation of firms such as ours and it will greatly reinforce TSX's
competitive position in Canada."
This press release contains "forward looking information" (as defined in
applicable Canadian securities legislation) that is based on expectations,
estimates and projections as of the date of this press release. Examples of
such forward looking information in this press release include, but are not
limited to factors relating to the business, financial position, operations
and prospects of TMX Group, which are subject to significant risks and
uncertainties. Forward looking information involves known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of TMX Group to be materially different from any
future results, performance or achievements expressed or implied by the
forward looking information in this press release.
We have no intention to update this forward looking information, except
as required by applicable securities law. This forward looking information
should not be relied upon as representing our views as of any date subsequent
to the date of this press release.
About TMX Group (TSX-X)
TMX Group's key subsidiaries operate cash and derivative markets for
multiple asset classes including equities, fixed income and energy. Toronto
Stock Exchange, TSX Venture Exchange, Montreal Exchange, Natural Gas Exchange,
Shorcan, Equicom and other TMX Group companies provide trading markets,
clearing facilities, data products and other services to the global financial
community who access Canada's capital markets. TMX Group is headquartered in
Toronto with offices in Montreal, Calgary and Vancouver. For more information
about TMX Group, visit our website at www.tsx.com.
For further information:
For further information: Carolyn Quick, Corporate Communications, TMX
Group, (416) 947-4597, firstname.lastname@example.org