Trading

TSX Smart Order Router - Now with Automated Jitney
Powered by: LAVA Technology

A smarter way to trade your way

TSX Smart Order Router is a turnkey, centralized service offering marketplace-neutral, customizable routing algorithms to suit your evolving trading strategies. It also now offers Automated Jitney - a service that will utilize these algorithms to execute your orders at the best price across all protected Canadian markets, without having to join all marketplaces.

Beyond standard compliance with best-price obligations, our unique suite of value-added features gives you the tools to source visible and on-book dark liquidity, minimize market impact and transaction costs, and post or hit on the visible marketplace of your choosing - with the trusted reliability and speed you have come to expect from TMX. By partnering with Lava Technology, the pre-eminent routing service provider in the United States, TMX delivers a world class solution powered by the same technology that has successfully routed and executed more than 1 billion shares per day.

The TSX smart order routing solution is fully integrated into the trading environment and intends to connect to all visible Canadian market places trading Toronto Stock Exchange and TSX Venture-listed securities. Its centralized nature provides routing consistency across all trading desks, delivering rich features regardless of how each desk connects to TSX/TSX Venture. It also allows you to leverage your existing order entry connections to access all visible marketplaces directly or via automated broker give-up, minimizing technology, connectivity, and data costs.

Access multiple marketplaces using a trusted, comprehensive, customizable, low-latency routing solution - a better way to trade your way.

Choose your strategy...


Slice & Spray Algorithm

A single spray of child orders is sent for a simultaneous depth-of-book sweep. Child orders are sized to match visible quotes, hence no interaction with hidden liquidity - except for TSX where unique access is available to icebergs providing opportunity for price improvement. Any residual, unfilled portion is posted on preferred marketplace.


Low Latency Strategy

- execute with certainty in a fast moving market before it can react and minimize clearing and back office costs





Iterative Algorithm

A sequence of child orders generated and iteratively routed to venue with best price for a top-of-book sweep while fully accessing hidden volume where present, until parent order is filled. Any residual, unfilled portion is posted on preferred marketplace.


Best Price Strategy

- execute at the best possible price by exhausting more liquidity at each price level where iceberg is present




Key Features

Advanced Algorithms
  • Slice & Spray - child orders are simultaneously sent to applicable marketplaces
  • Probe - sequence of child orders sent to each venue
  • Direct - sends entire order to customer selected venue
Automated Jitney Service
  • Complete and efficient market access without managing multiple marketplace relationships
  • Reduce costs associated with maintaining direct relationships across all Canadian marketplaces
  • Best-price compliant with IIROC and CSA policies
  • Turn-key solution to accessing all protected Canadian marketplaces, with one standardized agreement, one marketplace subscription/ membership and one access point

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Best-Price Compliant
  • Complete market access with full depth of consolidated order book
Low Cost
  • Free OPR Route-Out regulatory routing and no connection fee.
  • Reduced routing costs achieved through consolidation of existing multiple routing services with an opportunity to reduce data costs.
TSX On-book Dark Access
  • TSX SOR is the only available solution with access to hidden liquidity on TSX and TSXV (Iceberg, MGF)
Low Latency
  • Co-located with TSX QuantumT Trading Engine
Flexibility
  • User defined individual routing profiles with an ability to override default routing algorithm on an order-by-order basis and with customizable active and passive marketplace preference tables
Ease of Connectivity
  • No IT or network modification is required for existing TMX customers, connection is established by an IP address change only