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TMX website....don't understand symbols....

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[OP]
Deal Addict
Jan 3, 2013
2588 posts
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Sidney

TMX website....don't understand symbols....

So when I look up a symbol on the TSX website, like say Whitecap, I get the TSX page, but I also get a bunch of other options like "CCQ TSX". And its number are completely different. What is it?
7 replies
Newbie
Nov 22, 2012
22 posts
11 upvotes
"Besides trading on Toronto Stock Exchange and TSX Venture Exchange, there are alternative trading venues such as TMX Select, Alpha Chi-X Canada, CX2, Lynx ATS, Omega and Pure, as well as TriAct, a "dark pool" "

What are these alternative trading venues and who the hell trades there?
Deal Fanatic
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Dec 14, 2010
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doyoub wrote: "Besides trading on Toronto Stock Exchange and TSX Venture Exchange, there are alternative trading venues such as TMX Select, Alpha Chi-X Canada, CX2, Lynx ATS, Omega and Pure, as well as TriAct, a "dark pool" "

What are these alternative trading venues and who the hell trades there?
These are ATS (Alternative Trading Systems).

They are a trading system that is not regulated as an exchange, but is a venue for matching the buy and sell orders of its subscribers. Unlike an exchange, an ATS does not:

- require an issuer to enter into an agreement to have its securities traded on the marketplace,

- provide, directly, or through one or more subscribers, a guarantee of a two-sided market for a security on a continuous or reasonably continuous basis,

- set requirements governing the conduct of subscribers, other than conduct in respect of the trading by those subscribers on the marketplace, and

- discipline subscribers other than by exclusion from participation in the marketplace.

TMX was the former equity monopoly in Canada. It had 98% market share in 2008. Slowly other alternative exchanges are emerging to compete with TMX.

Many alternative trading systems are specifically designed to match buyers and sellers who trade in very large quantities (primarily professional traders and investors). Also, institutions will often use an ATS to find counterparties for transactions, instead of trading large blocks of shares on the normal exchange, a practice that can skew the market price in a particular direction, depending on a particular share's market capitalization and trading volume. For example, Alpha Trading Systems is owned by Canada’s biggest banks.

As a response to the competition, TMX is launching this year a new exchange to allow trading in shares of private companies.

Rod
Member
Sep 9, 2012
372 posts
119 upvotes
TORONTO
doyoub wrote: What are these alternative trading venues and who the hell trades there?
If you've ever traded online, or had an adviser trade on your behalf - you've likely traded there yourself.
Deal Addict
Dec 28, 2009
1294 posts
1045 upvotes
Montreal, QC
TorontoDavid wrote: If you've ever traded online, or had an adviser trade on your behalf - you've likely traded there yourself.
To clarify for the newbies, brokers are obliged to get you the best available price. Orders routers are used to scan all these exchanges within fractions of milliseconds and you will be filled on the exchange with the best price. Think of the TSX as the main market and these other exchanges are alternative markets where the stock also trades. It's the exact same stock, listed on multiple marketplaces.

You might see a stock quote with a bid/ask of 35.00/35.10. You're most likely looking at a quote feed for the TSX, it's too expensive for most firms to show consolidated quotes of every alternate exchange. If you submit a market buy order, you may get filled at 35.08, 2 cents better than the TSX. You'll see on your trade confirmation "filled on Alpha". You may also see "filled on multiple exchanges" if numerous ones were used. The important thing is that these exchanges only fill orders if they can deliver a better price than the bid/ask on the TSX.

To make things really simple, imagine buying an iPod online. Instead of just checking Apple.com, imagine a system that checks the inventory at Best Buy, Future Shop, Amazon and every other store that sells iPods at the time you submit your order. If there is an iPod in stock at Amazon for 2 dollars cheaper, that is the store you'll buy the iPod from.
Newbie
Nov 22, 2012
22 posts
11 upvotes
habsfan321 wrote: To clarify for the newbies, brokers are obliged to get you the best available price. Orders routers are used to scan all these exchanges within fractions of milliseconds and you will be filled on the exchange with the best price. Think of the TSX as the main market and these other exchanges are alternative markets where the stock also trades. It's the exact same stock, listed on multiple marketplaces.

You might see a stock quote with a bid/ask of 35.00/35.10. You're most likely looking at a quote feed for the TSX, it's too expensive for most firms to show consolidated quotes of every alternate exchange. If you submit a market buy order, you may get filled at 35.08, 2 cents better than the TSX. You'll see on your trade confirmation "filled on Alpha". You may also see "filled on multiple exchanges" if numerous ones were used. The important thing is that these exchanges only fill orders if they can deliver a better price than the bid/ask on the TSX.

To make things really simple, imagine buying an iPod online. Instead of just checking Apple.com, imagine a system that checks the inventory at Best Buy, Future Shop, Amazon and every other store that sells iPods at the time you submit your order. If there is an iPod in stock at Amazon for 2 dollars cheaper, that is the store you'll buy the iPod from.
good to know!! I thought there was only one exchange which is TSX ... lol

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