Toronto – July 2, 2009
Starting today, July 2nd, Omega ATS no longer pays trading rebates. Instead we are giving liquidity providers something they really want – time priority. Many of our dealer clients are now routing Omega #1 on their active take flow in order to take advantage of our absurdly cheap, active-side trading fee of 7 cents per trade – so posting a limit order on Omega at the near-side of the market in the names of interest to those active-side firms means you will get filled first in Canada.
For example, if Dealer X routes active orders to Omega whenever our quotes are tied at the best bid/best offer, and Dealer X’s clients are active in XYZ, then Dealer Y can be the last dealer in Canada to post a quote for XYZ at the market and yet be the first to get hit by Dealer X’s active client flow. It is these pockets of time priority that are of increasing interest to our liquidity providers.
For over a year, we had one core liquidity provider plus occasional activity from a couple of other firms; now we are consistently receiving passive orders from seven firms representing a cross-section of the Canadian dealer community. We watch daily as our new liquidity providers experiment with posting and they invariably come back for more the next time around. One of our liquidity providers confides that the Omega fill rate on the stocks he trades is now superior to any other visible marketplace venue – he has found his pockets of time priority where he gets filled first in Canada.
We look forward to returning sizeable cost savings to our active-side clients and, in turn, giving our liquidity providers priority fill opportunities.
Sincerely,
Mario Josipovic
President
Omega Securities Inc.
416.646.2765
[email protected]
Greg King
Chief Operating Officer
Omega Securities Inc.
416.646.2764
[email protected]
