Well I know this is other and should perhaps be on the "other" board, however I know this has been discussed here in the past and the confusion it creates, so with that and the fact that the silence is deafening and the lack of information and inherent enthusiasm is less than exciting, I thought I would break the rules this time only.
Do make today the very best day of the rest of your lives fellow PLE'rs bag-holder and aside from that a good day and deserved long weekend to you all! ;0)<
2fast
Canada regulator reviewing Alpha program - report
* Globe says brokerages face probe for stock trades to Alpha
* "Momentum Initiative" aimed at boosting Alpha liquidity
TORONTO, Sept 3 (Reuters) - Canadian market regulators are reviewing a plan used by some of the country's biggest brokerages to direct more orders to an alternative trading system they own, the Globe and Mail reported on Friday.
The enforcement division of the Investment Industry Regulatory Organization of Canada (IIROC), the self-regulatory group that oversees investment dealers and trading activity on debt and equity markets in Canada, is reviewing Alpha Goup's program known as the "Momentum Initiative," the newspaper said.
Under the plan, Alpha, as early as last April, asked its backers to switch some orders from other markets, such as the Toronto Stock Exchange , to Alpha in order to make it busier.
Alpha's owners include: BMO Nesbitt Burns Inc, Canaccord Capital Inc, CIBC World Markets Inc, Canada Pension Plan Investment Board, Desjardins Securities Inc, National Bank Financial Inc, RBC Dominion Securities Inc, Scotia Capital Inc, and TD Securities Inc.
Connie Craddock, of IIROC, declined to comment on whether the regulator is reviewing the plan.
As part of the review, the Globe reported IIROC in a letter last month asked firms to provide copies of "procedures that outline a process designed to achieve best execution." It is unclear if the move will lead to any enforcement action.
IIROC is focusing on orders routed to Alpha before trading begins for the day. When it kicks off, the prices on Alpha are often different from those on the TSX, so orders sent to Alpha may not get the best price, the newspaper reported.
The review comes amid a push by regulators to ensure investors get the best price when they buy and sell stocks, as well as get the best handling of their orders.
Last month, in a separate matter, IIROC reached a sett lement with BMO Nesbitt Burns, which agreed to pay a C$250,000 ($240,000) fine for failing to make reasonable efforts to meet its "best price obligations."
The review of the program also highlights the potential for conflict since the owners of Alpha dominate stock trading in Canada.
