Introducing AlphaX and Alpha DRK
With AlphaX™ and Alpha DRK™, we’re introducing a democratized environment that aims 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.
These order books aim to level the playing field for the natural investor with innovative tools designed for liquidity-providing participants. Offering advantages previously enjoyed by faster trading community members, AlphaX and Alpha DRK allow market participants to post orders with greater confidence.
The growth of algorithmic trading over the last decade has greatly 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.
With investor demand rising for differentiated products, TSX Inc. is modernizing its Alpha order books to offer innovative products that support liquidity for large displayed and non-displayed active order flows.
Enhanced Features
Designed for the Canadian marketplace, these Alpha order books aim to balance high-speed liquidity consumption with order protection and stable execution. Features include:
Order Processing Delay
Protect resting orders from adverse selection in fast-moving markets by delaying incoming active order flow. This feature gives investors time to manage their liquidity at appropriate prices.
Manage Order Behaviour
Leverage a new predictive mechanism, TMX Quote Decay Signal™ (TMX QDS™), which detects imminent adverse quote movements, to manage orders with discretionary pricing capabilities.
Understanding Smart Peg™ and Smart Limit™
Discover the power of Smart Limit™ Orders, powered by the cutting-edge TMX Quote Decay Signal™, and explore how the three-millisecond order processing delay can give you the edge in fast-moving markets. Learn how AlphaX's visible order book and Alpha DRK's dark order book with Smart Peg™ Orders are leveling the playing field and opening up new opportunities for high-quality execution and improved performance.
Lit and Dark Trading Strategies
Smart Limit™ and Smart Peg™ are innovative order types for different routing strategies.
Smart Peg on Alpha DRK
An undisclosed order type pegged to the passive side of the NBBO with the discretionary capability of trading at more aggressive prices up to the midpoint.
Smart Limit on AlphaX
A visible limit order type, this order temporarily re-prices just outside the quote when signaled to protect against adverse selection at stale prices.
Benefits
Democratized speed
Price stability
Best execution
Improved performance
Want More Information?
Please contact us for more infomation on these new order types: trading_sales@tmx.com
Download the FAQ