This is one way we can stop the manipulation rort on ASX, australia needs to follow in Canada's footsteps a new stock exchange free of HFT and dark pools is required!
Canada to Get New HFT-Free Stock Exchange Traders Magazine Online News, June 25, 2013
Some of Canada’s top financial firms are forming a new stock exchange that will bar high-frequency trading strategies and the maker-taker pricing model.
Called Aequitas, the new market is owned by Barclays Corp., CI Investments, IGM Financial, a partnership of Investors Group and Mackenzie Financial), ITG Canada, PSP Public Markets, and Royal Bank of Canada. The group represents professional money managers, pension fund managers, institutional and retail brokers, and Canadian issuers.
"Through Aequitas, we have a compelling opportunity to create a level playing field for both retail and institutional investors by challenging certain predatory high frequency trading strategies which have impacted the quality of existing equity markets," Greg Mills, chairman of Aequitas, and co-head, global equities, RBC Capital Markets, said in a statement.
"Marketplaces in Canada and around the globe are increasingly out of sync with their traditional users as they attract and cater to volume and revenue-generating trading over traditional investors and true market makers. Aequitas is designed to promote true and reliable liquidity, and will provide an operating model more aligned with the interests of investors and issuers to support market quality."
In the statement, Aequitas outlined four objectives it hoped to meet: put the investor first, allow for market making; introduce innovative and affordable services; and service all types of issuers. In addition, the new exchange plans to restrict “predatory and opportunistic trading strategies while challenging the dominant make-take fee model.”
It plans to file the appropriate regulatory documents by the end of the year, the group said.
The move comes at a time when the Canadian market is consolidating with TMX Group, owner of the Toronto Stock Exchange and the Alpha ECN, as the dominant player. It also comes at a time of great concern over the impact of professional traders on the market.
