TMX Group has announced the launch of a new Canadian trading platform consisting of two order books, Alpha-X and Alpha DRK, designed to create an optimised trading environment to enhance execution quality.
The firm writes that these two new equities order books aim to provide high-quality execution for natural order flow, limit adverse selection resulting from natural speed advantages in the trading ecosystem, and improve the overall trading experience for all participants.
“TMX is committed to exploring new ways to meet the needs of clients across our diverse trading ecosystem, and to providing adaptive, responsive solutions to their competitive challenges here in Canada, and around the world,” says Rizwan Awan, President of Equity Trading & Head of TMX Markets, Products and Services. “Alpha-X and Alpha DRK are designed to enable all participants, including institutional clients, to optimise trading strategies and improve their execution quality in fast-moving, modern markets. We are grateful for the feedback and continued partnership of stakeholders in our marketplace, as we work to make our markets better today and into the future.”
Alpha-X is a visible order book that has all of the same order types and trading functionalities currently available on TSX Alpha Exchange and features the new Smart Limit order type.
Alpha DRK is a fully dark order book with a comprehensive suite of pegged (Primary, Market, Minimum Price Improvement, Midpoint) market and limit order types, and has the new Smart Peg order type.
The firm writes that Smart Limit and Smart Peg are innovative new order types designed to help clients navigate fast moving markets and optimise their trade execution by dynamically adjusting their orders based on realtime market conditions.