Alpha ATS reports another market milestone

Alpha reports another market milestone. On Monday, March 1, 2010, for the first time the ATS's market share of TSX-listed stocks topped 30 per cent (30.1), an impressive feat for the year-and-a-half old ATS and its 33 employees. On that same day, the ATS continued to trump all other exchanges in the market share of exchange-traded funds, hitting 52.3 per cent, roughly 10 per cent higher than the former monopoly, the TSX.

Alpha has also made progress with its goal of attracting a larger share of TSX-V stocks. During the week the ATS handled 10.9 per cent of TSX-V trading, up from 9.8 per cent the previous week and 9.4 per cent in the week ended Feb. 19, 2010. Jos Schmidt, Alpha's chief executive officer, says he is convinced the ATS's recent reduction in trading fees for stocks under $1 is the reason for the increased market share. In February, Alpha dropped fees on stocks under $1 to 0.04 of a cent per share for the active side (the buyer). It also rebates the passive side (the seller) 0.02 of a cent per share. On March 1, 2010, the TMX Group responded to Alpha's lower fees by reducing fees for stocks under $1 to 0.03 of a cent to the active side, while rebating the passive side 0.01 of a cent per share.

Chi-X, meanwhile, has stepped away from the price-cutting war between Alpha and the TMX Group, and is focusing on advertising its speedy delivery of market data. Just as the Winter Olympics wrapped up, the ATS decided to write a PR piece entitled "Milliseconds...the difference between Gold & no hardware!" In the ad, Chi-X says milliseconds do matter for clients, and the ATS makes a comparison with speed skating events: "The difference between becoming a national superstar and achieving celebrity status was determined by less time than it will take you to read the last few words of this sentence. In short, in a highly competitive environment in which using the right equipment can make all the difference, incremental speed advantages make all the difference." It then says: "Are the Olympic Games any different from the highly competitive world of trading? Chi-X Canada would like to remind you that the answer is no!!" The ATS then touts its hardware, claiming to have the lowest processing time and highest throughput of all Canadian marketplaces.

by Stockwatch Business Reporter