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Alpha IntraSpread(TM)
TORONTO, July 12, 2011/PRNewswire/ --
Establishing a New Benchmark for Execution Quality
Alpha Group today announced that the Alpha IntraSpread(TM) dark pool has
experienced a steady ramp up in volume traded since its June 20th, 2011
launch date, culminating yesterday in a daily volume traded close to 5
million shares. Furthermore, the Alpha IntraSpread(TM) is delivering on all
expectations with respect to execution quality.
Yesterday, July 11th, 2011, the early adopters of the Alpha
IntraSpread(TM) traded 4,744,100 shares across 101 securities. The 5,597
trades represented a total value traded of $76,201,412. "We are very pleased
with the early results of our new facility," indicated Jos Schmitt, CEO of
Alpha Group. "It is particularly encouraging considering the fact that
currently only a limited number of dealers have the technology in place to
properly access it."
The volume traded is an interesting measure of early success and promise
for future growth. The true success of the early days of the Alpha
IntraSpread(TM), however, is that it has proven how the right market
structure solutions can substantially improve the quality of execution in
the Canadian marketplace. This is demonstrated through the following facts:
- Yesterday, the cumulated gains, as measured by the price
improvement, for retail investors with marketable orders - subsequent to
their dealers using the Alpha IntraSpread(TM) and executing trades that
were price improved over the National Best Bid and Offer - were in
excess of $5,000 (over $14,000 since launch).
- Retail investor orders are also being executed with little risk
of being gamed, as the Alpha IntraSpread(TM) prevents information
leakage by not sending out indications of interest and by leveraging its
unique matching algorithm.
- Liquidity providers, posting dark orders in the Alpha
IntraSpread(TM), avoided trading at sub-optimal prices by being
protected from toxic flows and information leakage.
- Yesterday, the average size of trades executed on the Alpha
IntraSpread(TM) was 848 shares - double the average trade size of all
other marketplaces and thereby providing the retail investors and
liquidity providers with far better execution immediacy (44 trades were
of a size of 10,000 shares or greater).
In addition to all of these quality of execution benefits, retail
brokers were also able to substantially decrease their cost of trading:
- Active fees in the Alpha IntraSpread(TM) are $0.0004 per
share for securities with a value equal or above $1, and of $0.0001 per
share for securities with a value below $1.
- Back-office processing costs are considerably reduced as a
consequence of the higher average trade size and thus lower trade
fragmentation on a per order basis.
"The demonstrated impact of the Alpha IntraSpread(TM) on the quality of
execution and on trading costs will no doubt accelerate the demand and
resulting technology initiatives aimed at supporting it," continued Jos
Schmitt. "Furthermore, it demonstrates the principles that we at Alpha stand
for: quality of execution at minimal cost; and successful market structure
innovation driven by the better interests of the various industry
stakeholders involved - retail, buy-side, sell-side or value-adding HFTs."
"Let me be clear," concluded Schmitt. "These stakeholders are more and
more sensitive to the toxicity of a marketplace when deciding where to
trade. This is an issue that the Alpha IntraSpread(TM) has eliminated."
About Alpha Group - Alpha Group comprises the leading Alternative
Trading System for Canadian Securities - Alpha ATS, and a data distribution
plant for Alpha ATS market data. Alpha Group was established in May, 2007 by
nine of Canada's leading financial institutions with the aim of increasing
the country's securities trading efficiencies and making the Canadian
marketplace more globally competitive. Established for the Industry, by the
Industry, the Alpha Group focuses on increasing liquidity, reducing the cost
of trading and providing innovative services leveraging its unique
expertise, operating model and technological capabilities.
For further information regarding Alpha Group, visit
http://www.alpha-group.ca.
For further information:
Jennifer Bennett
+1-647-259-0421
jennifer.bennett@alpha-group.ca
Source: Alpha Group
.
Alpha IntraSpread(TM)
TORONTO, July 12, 2011/PRNewswire/ --
Establishing a New Benchmark for Execution Quality
Alpha Group today announced that the Alpha IntraSpread(TM) dark pool has
experienced a steady ramp up in volume traded since its June 20th, 2011
launch date, culminating yesterday in a daily volume traded close to 5
million shares. Furthermore, the Alpha IntraSpread(TM) is delivering on all
expectations with respect to execution quality.
Yesterday, July 11th, 2011, the early adopters of the Alpha
IntraSpread(TM) traded 4,744,100 shares across 101 securities. The 5,597
trades represented a total value traded of $76,201,412. "We are very pleased
with the early results of our new facility," indicated Jos Schmitt, CEO of
Alpha Group. "It is particularly encouraging considering the fact that
currently only a limited number of dealers have the technology in place to
properly access it."
The volume traded is an interesting measure of early success and promise
for future growth. The true success of the early days of the Alpha
IntraSpread(TM), however, is that it has proven how the right market
structure solutions can substantially improve the quality of execution in
the Canadian marketplace. This is demonstrated through the following facts:
- Yesterday, the cumulated gains, as measured by the price
improvement, for retail investors with marketable orders - subsequent to
their dealers using the Alpha IntraSpread(TM) and executing trades that
were price improved over the National Best Bid and Offer - were in
excess of $5,000 (over $14,000 since launch).
- Retail investor orders are also being executed with little risk
of being gamed, as the Alpha IntraSpread(TM) prevents information
leakage by not sending out indications of interest and by leveraging its
unique matching algorithm.
- Liquidity providers, posting dark orders in the Alpha
IntraSpread(TM), avoided trading at sub-optimal prices by being
protected from toxic flows and information leakage.
- Yesterday, the average size of trades executed on the Alpha
IntraSpread(TM) was 848 shares - double the average trade size of all
other marketplaces and thereby providing the retail investors and
liquidity providers with far better execution immediacy (44 trades were
of a size of 10,000 shares or greater).
In addition to all of these quality of execution benefits, retail
brokers were also able to substantially decrease their cost of trading:
- Active fees in the Alpha IntraSpread(TM) are $0.0004 per
share for securities with a value equal or above $1, and of $0.0001 per
share for securities with a value below $1.
- Back-office processing costs are considerably reduced as a
consequence of the higher average trade size and thus lower trade
fragmentation on a per order basis.
"The demonstrated impact of the Alpha IntraSpread(TM) on the quality of
execution and on trading costs will no doubt accelerate the demand and
resulting technology initiatives aimed at supporting it," continued Jos
Schmitt. "Furthermore, it demonstrates the principles that we at Alpha stand
for: quality of execution at minimal cost; and successful market structure
innovation driven by the better interests of the various industry
stakeholders involved - retail, buy-side, sell-side or value-adding HFTs."
"Let me be clear," concluded Schmitt. "These stakeholders are more and
more sensitive to the toxicity of a marketplace when deciding where to
trade. This is an issue that the Alpha IntraSpread(TM) has eliminated."
About Alpha Group - Alpha Group comprises the leading Alternative
Trading System for Canadian Securities - Alpha ATS, and a data distribution
plant for Alpha ATS market data. Alpha Group was established in May, 2007 by
nine of Canada's leading financial institutions with the aim of increasing
the country's securities trading efficiencies and making the Canadian
marketplace more globally competitive. Established for the Industry, by the
Industry, the Alpha Group focuses on increasing liquidity, reducing the cost
of trading and providing innovative services leveraging its unique
expertise, operating model and technological capabilities.
For further information regarding Alpha Group, visit
http://www.alpha-group.ca.
For further information:
Jennifer Bennett
+1-647-259-0421
jennifer.bennett@alpha-group.ca
Source: Alpha Group
.