(September 20 – 11:20) – At the Maritime Life President’s Club breakfast meeting this morning, Adam Conyers, senior vice president equities with the Toronto Stock Exchange, revealed the latest TSE strategic plans.
The TSE has signed an agreement with Ashton Technology Group Canada to provide an electronic volume-weighted average price trading system, named eVWAP. This system will anonymously match orders before market opening for settlement at that day’s volume-weighted average price, which will be calculated at end-of-day. eVWAP will allow institutional money managers, and broker-dealers, to execute securities trades of Canadian listings.
The TSE continues to work to simplify its trading algorithm. Following simplification, it plans to introduce continuous market anonymity. Over the next six months it will also introduce an electronic call market and market-on-close features.
Conyers says the TSE is also focusing on good corporate governance, both its own, and that of its listings. He says a recent McKinsey survey indicates that on average fund managers are prepared to pay an 11% premium for good governance.
He also talked up the creation of a round-the-clock Global Equity Market, linking the TSE with the NYSE, Euronext (which is made up of the Paris, Amsterdam, and Brussels exchanges), Tokyo, Hong Kong, Australia, Mexico and Brazil. He says talks are ongoing at a high level, as are talks about a bilateral alliance with the NYSE. The TSE estimates that more than 50 Canadian companies will be traded on GEM.
-IE Staff