TMX Group, the operator of the Toronto Stock Exchange, has
announced the launch of AlphaX US, a new Alternative Trading System (ATS)
venue. The platform focuses on enhancing execution quality and marks TMX
Group’s first expansion outside Canada for its Markets division.
Separately, TMX Group has finalized the acquisition of the
remaining 78% stake in VettaFi Holdings LLC. Combined with its earlier 22%
investment, the total acquisition cost is $1.03 billion (CAD 1.40 billion).
AlphaX US Offers Customization and Analytics
“After continuous consultation with our clients, we are
proud to introduce AlphaX US, a venue that is focused on execution performance,
and provides innovation and ease to the broker dealer community,” said
Heidi Fischer, President, TSX Alpha US.
TMX Group launches new US Equity ATS venue – AlphaX US marks first international expansion for TMX Markets. Read the release: https://t.co/94n8iaJ75F pic.twitter.com/pkWWWaZan8
— TMX Group (@TMXGroup) January 22, 2025
AlphaX US will exclusively trade U.S.-listed securities,
including common stocks, exchange-traded funds, and American depositary
receipts under Regulation NMS. Participants must be FINRA-registered
broker-dealers.
“There are several unique offerings within AlphaX US,
and we have combined that functionality with a model that provides easy
implementation, customization, and strong analytics for our partners. It’s
through feedback and collaboration with our stakeholders that we are able to deliver solutions that make
markets better,” Fischer added.
New Trading System Fulfills Client Needs, TMX Says
The system adheres to the U.S. equity market holiday
schedule and operates during regular US market hours. Order entry opens 60
minutes before trading begins and continues throughout the trading day.
“One of our top priorities is solving for the business
needs of our clients,” commented Luc Fortin, Global Head of Trading, TMX
Group. “We are excited to embark on this next chapter of growth for TMX to
build upon.”
TMX Group Finalizes VettaFi Acquisition Deal
VettaFi, a US firm specializing in indexing, analytics, and
digital distribution for the ETF and asset management sectors, generates over
80% of its revenue from recurring sources, as reported by Finance Magnates.
This
purchase supports TMX Group’s strategy to expand its recurring revenue and
data-driven products. Financed by $1 billion in bank debt, the deal is expected to
benefit TMX’s adjusted EPS in its first year. VettaFi will operate under TMX’s
Global Solutions division.
This article was written by Tareq Sikder at www.financemagnates.com.
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