The Toronto Stock Exchange (TSX) will face another rival by the end of this year as Instinet, an international operator of alternative trading systems, will launch its own system into a market it says needs more choice.
Instinet said its ICX system would be a high-performance, fully anonymous and low-cost continuous alternative trading system for TSX-listed equities that would offer something different to investors.
Tal Cohen, Instinet senior vice-president, said: “There is a lot of unmet demand in Canada . . . and the perception globally is that Canada is a difficult market to trade in.”
He said greater choice for traders would provide more efficiency.
Many analysts believe there could be too many markets for all to survive but Mr Cohen said: “We are coming out of an environment right now where there isn’t enough choice . . . clearly today we are on the other side of that pendulum.
“I think you want investors . . . to choose the winners and losers.”