In preparation for its expected opening later this month, Canada’s newest stock exchange has named several top tier brokers that will be assisting traders making markets in securities.
Neo management announced exchange liquidity will always be available from its Designated Market Makers – Barclays, Royal bank of Canada, BMO, National Bank and TD Securities, as well as select independent firms such as BBS Securities, Independent Trading Group; Jitneytrade, National Bank Financial and W.D. Latimer.
In order to compete with the likes of TMX Group, which currently sees 60 to 70 percent of all Canadian equity trading volume, these DMMs have been assigned to create liquidity in almost all TSX and TSX-V listed securities as well as Neo-listed stocks.
“We are very excited to launch the NEO Exchange with this extremely qualified and energized group of market makers,” stated Joacim Wiklander, chief trading & data officer, Aequitas NEO Exchange. “With one of the largest US market makers entering the Canadian market, several Canadian bank dealers committing new capital to support liquidity as well as independent firms who invested in new technologies to be on the top of their game, we have the right mix of players to cater to the various liquidity needs of public companies and investment products”
All Designated Market Makers are required to assume market-making responsibility for a number of assigned securities, with the appropriate balance of liquid and less-liquid securities. One week ahead of its launch, the NEO Exchange is pleased it has managed to assign almost all TSX and TSXV-listed securities to the Designated Market Makers. NEO-listed securities will be assigned prior the launch of each specific NEO Exchange listing, with direct participation from the NEO-listed company.
A launch date of March 27 is slated for Neo.
The Designated Market Makers on the NEO Exchange will be obligated to provide liquidity throughout the entirety of the trading day in both the Lit Book and the NEO BookTM. The firms represent both shareholders of Aequitas and non-shareholders and are all IIROC members. The market makers will trade for their own accounts to assist in the maintenance of a fair and orderly market and to achieve reasonable price continuity and liquidity for their assigned securities.