TMX Expands Co-Location Facility in Response to Buy-Side Demand

The expansion comes as a growing number of buy-side market participants look to gain high-speed access to Canadian equity and derivatives liquidity.

TMX Group announced the expansion of its co-location facility as a growing number of buy-side market participants look to gain high-speed access to Canadian equity and derivatives liquidity.

The exchange operator said its co-located clients now have low-latency access to the Toronto Stock Exchange, the TSX Venture Exchange, the Montreal Exchange, and TMX Select trading engines and market data feeds. The expansion now opens users up to nearly 71 percent of all Canadian equity liquidity and 100 percent of the nation's derivative exchange liquidity, TMX added.

"Interest in co-locating at TMX Group has increased as our client community has broadened to include buy-side participants, technology vendors, application service providers and financial networks," said Eric Sinclair, president of TMX Datalinx.

The announcement comes a day after TMX said it will roll out a trading technology next year that will dramatically boost trading speeds on the Toronto Stock Exchange and TSX Venture Exchange.

The company said the TMX Quantum XA platform is expected to generate a twenty-fold reduction in median latency to sub-100 microseconds on order executions. The firm added that it new trading system is designed to handle 200,000 orders per second.

TMX XA will initially be implemented on TMX Select during the first quarter of next year, the company revealed, noting that it expects the system to incur annual operating expenses of nearly $4 million. As the Senior Editor of Advanced Trading, Justin Grant plays a key role in steering the magazine's coverage of the latest issues affecting the buy-side trading community. Since joining Advanced Trading in 2010, Grant's news analysis has touched on everything from the latest ... View Full Bio