Alpha-X and Alpha DRK

TMX Group recently announced the introduction of two new order books: the visible Alpha-X™ and the fully dark Alpha DRK™. All securities listed on TSX and TSXV are tradeable on Alpha-X and Alpha DRK; however, like the existing Alpha market, they are not new listing venues. The addition of these order books provide investors with more options and greater flexibility on order execution. Alpha-X and Alpha DRK aim to deliver improved price stability in volatile market conditions, improving the overall quality of our markets.

Why introduce Alpha-X and Alpha DRK?

The growth of algorithmic trading has impacted the markets through automation and improved order execution. This trend has created new opportunities for smarter routing strategies to deliver price stability, higher-quality execution and improved performance for traders. With investor demand rising for differentiated products, the new Alpha order books were introduced.

Key features:

• A speedbump is applied in Alpha-X and Alpha DRK. A speedbump is a short delay of a fraction of a second that an exchange applies to the processing of some order types. The speedbump is aimed at protecting natural liquidity from adverse selection by opportunistic active order flow.
• A new Smart Limit™ order type in Alpha-X has the ability to reprice in response to unstable market conditions. The Smart Limit feature aims to protect orders from adverse price movements.
• The Smart Peg™ order type in Alpha DRK pegs on the passive side of the quote and has the discretionary ability to trade at more aggressive prices against incoming orders, up to the midpoint of the protected National Best Bid/Offer.

How to access trading data for Alpha-X and Alpha DRK?

Issuers can access trading data for both Alpha-X and Alpha DRK for free through TSX InfoSuite^Ⓡ. Simply add the suffix :ALX to your symbol in any modules to see trades on both of these order books.

Copyright © 2024 TSX Inc. All rights reserved. Do not copy, distribute, sell or modify this document without TSX Inc.'s prior written consent. This information is provided for information purposes only. Neither TMX Group Limited nor any of its affiliated companies guarantees the completeness of the information contained in this publication, and we are not responsible for any errors or omissions in or your use of, or reliance on, the information. This publication is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied upon for such advice. The information provided is not an invitation to purchase securities listed on Toronto Stock Exchange and/or TSX Venture Exchange. Infosuite, Smart Limit, Smart Peg, The Future is Yours to See., TMX, the TMX design, TMX Group, TSX, TSXV, and Voir le futur. Réaliser l'avenir. are the trademarks of TSX Inc. Alpha, Alpha-X, Alpha DRK are the trademarks of Alpha Exchange Inc. and are used under license.