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Message: More on the ATS

These alternative stock exchanges are disturbing in some ways. I use RBC direct investing but the first PDG trades yesterday were not through the TSX, so the change in share price did not show on either the TSX or RBC displays. In fact the majority of the PDG shares that traded yesterday were not on the TSX! A total of 32 k shares traded on Alpha and Chi-X while 21.7k traded on TSX-V. Agoracom only shows the TSX-V numbers as well. Here's some information from a stockwatch article:

Pure Trading was the third most active alternative trading system in Canada for the week ended Aug. 3, 2012. Together, the ATSs handled 33.8 per cent of Canadian volume, leaving 66.2 per cent to the Toronto Stock Exchange and the TSX Venture Exchange. Alpha Exchange held onto its ATS lead, trading, on average, 101 million shares a day or 17.3 per cent of volume. Chi-X Canada followed with an average of 54.6 million shares a day or 9.3 per cent of volume. Pure handled 15.9 million shares a day or 2.7 per cent. In fourth place, dark pool Match Now handled 13.2 million shares a day or 2.2 per cent. Omega came fifth, trading 6.5 million shares or 1.1 per cent, and TMX Select followed with 6.2 million shares or 1 per cent.

I've sent e-mails to RBC requesting some answers. I can see that these other exchanges can provide liquidity but they also provide a price setting mechanism. It appears to be another example of the retail investor being left behind. The brokers can see all of this information and only they can access these other exchanges. If anyone else can shed some light it would be appreciated.

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Aug 11, 2012 04:29PM
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