Sources of exchange trades
To ensure that exchange trades are confirmed for settlement in CDSX, they must be matched prior to delivery to CDSX and cannot be modified by the participants before settlement.
CDS recognizes three types of marketplaces as sources of exchange trades for settlement in CDSX:
An exchange must be recognized by a Canadian securities regulatory authority that allows them to operate and sets out the terms and conditions under which they are regulated. Each securities regulatory authority maintains a list of recognized exchanges. CDS refers to these lists to identify acceptable exchanges for CDSX.
- QTRS (Quotation and Trade Reporting System)
A QTRS is defined as an entity other than an exchange or registered dealer that operates facilities permitting the dissemination of price quotations for the purchase and sale of securities and reports of completed transactions in securities for the exclusive use of registered dealers. The Canadian Securities Administrators' National Instrument 21-101 states that a QTRS must be recognized by a securities regulatory authority that allows them to operate and sets out the terms and conditions under which they are regulated. Each securities regulatory authority maintains a list of recognized QTRS. CDS refers to these lists to identify acceptable QTRS's for CDSX.
- ATS (Alternative Trading System)
An ATS must be designated as an Acceptable Trade Matching Utility by the Investment Industry Regulatory Organization of Canada (IIROC) under regulation 800.49. The IIROC regulation assures that trades that are not transacted on an exchange are matched and reported by its members.
Further, NI 21-101 sets out the following requirements for an ATS to be established as a marketplace:
- Registration as a dealer
- Membership of a self-regulatory entity
- Compliance with the provision of this Instrument and NI 23-101 – Trading Rules.
NI 21-101 also states that an ATS shall report and settle trades through a clearing agency.
Currently approved sources of exchange trades and their market identifiers are listed below:
Goldman Sachs SIGMA X Canada (SGMC)
ICXA (Instinet Canada Cross ICX)
NASDAQ CXC Limited (CHIX)
Omega ATS (OMEG)
Omega Lynx (Lynx)
Pure Trading (PURE)
TriAct Canada Marketplace LP (TCM)