Now that it has been absorbed by TMX Group Ltd. (TSX:X), Alpha Exchange Inc. won’t be providing competition in the Canadian listings business.
In Thursday’s OSC Bulletin, it was announced that the Ontario Securities Commission (OSC) has approved the withdrawal of Alpha’s proposed listing rules. Alpha Exchange will continue to be recognized as an exchange but will not carry out any listing activity, it notes. If it decides to initiate listing activity in the future, it will have to submit new listing rules for regulatory approval.
The OSC notes that it has also approved proposed arrangements for the operation of Alpha Exchange by TMX Group. According to a TMX notice, it will continue to operate the Alpha trading platform and will “ensure many of the capabilities and features currently valued by customers are maintained”.
In order to do this, Alpha’s outsourced trading technology is to migrate to the TMX Quantum technology, which is currently being used by all participants on Toronto Stock Exchange, TSX Venture Exchange and TMX Select. It says that moving Alpha to TMX Quantum “provides the most streamlined approach and offers maximum ongoing efficiency for customers.”
The migration is being planned, and is expected to be completed by the end of the second quarter of 2013.
TMX also says that it plans to move Alpha into existing TMX Group data centres as well, “offering customers further reductions in complexity as well as cost-savings opportunities. TMX Datalinx will also manage Alpha data distribution through its existing channels.”
Separately, the Bulletin also indicates that the OSC has approved the integration of certain aspects of the operations of CDS Ltd. and its subsidiaries, with TMX Group. “The integration approved by the commission primarily deals with corporate services and systems and areas that are duplicative. The core clearing, settlement and depository operations of CDS Clearing will not be affected by the integration,” it says.