ATS Numbers

For the week ended Sept. 16, 2011, Alpha Trading Systems handled 171 million shares a day or 18.9 per cent of total Canadian volume. In second place, Chi-X Canada handled 63.2 million shares a day or 7 per cent of volume. Pure traded 26.1 million shares a day or 2.8 per cent. Omega ATS came fourth with 18.3 million shares a day or 2 per cent, and in last place was TMX Select with 10.8 million shares a day or 1.2 per cent. Together, the ATSs took 30.8 per cent of trading volume, leaving 69.2 per cent to the Toronto Stock Exchange and the TSX Venture Exchange.

One year ago, the ATSs captured about 25 per cent of Canadian trading volume. However, since January, they have remained flat, with between 30 per cent and 35 per cent. Year over year, Chi-X and Omega have made the biggest gains. In August, 2011, Chi-X had 7.2 per cent of trading volume, up from 4.7 per cent in 2010. Omega had 2 per cent, up from 0.5 per cent a year earlier. Omega's president, Mike Bignell, has spent this year talking up Omega's "headway," which he attributes to microscopic fees, low latency and a fast matching engine.

Chi-X has also been gaining ground in Europe, where Bloomberg reports that last month Chi-X was the largest European stock market by turnover, handling 213 billion euros of security transactions. The London Stock Exchange handled 205 billion euros, followed by the NYSE Euronext with 166 billion euros and the Deutsche Boerse AG with 152 billion.

Meanwhile, Chi-X Europe is being pursued by Bats Global Markets, the second largest European ATS. Bats submitted its takeover proposal with the United Kingdom Competition Commission in June, and its expects to hear back by early December.

by Stockwatch Business Reporter