by Stockwatch Business Reporter
Pure Trading was once again Canada's third most active alternative trading system during the 4.5-day week ended Dec. 24, 2010. The most active ATS was Alpha Trading Systems with an average of 172 million shares a day or 17.2 of the total market. In second place was Chi-X with 45.1 million shares or 5 per cent of the market. Pure traded 21.2 million shares a day or 2.3 per cent. In last place was Omega ATS with 8.8 million shares or 0.9 per cent. Combined, the ATSs accounted for 25.3 per cent of the market, while the Toronto Stock Exchange, TSX Venture Exchange and the Canadian National Stock Exchange got the remainder.
Taking a look at only TSX listings, Alpha captured 22.1 per cent, up from 19.2 per cent last week; Chi-X had 5.7 per cent and Pure took 3.8 per cent. The TSX captured only 65.6 per cent of market volume, down from 66.9 per cent a week earlier.
Only the TMX Group had something to brage about this week. Its Montreal Exchange set a volume record. On Dec. 20, the MX had a year-to-date volume of 43.4 million contracts, up from its previous record of 42.7 million contracts in 2007.
The United States Financial Regulatory Authority chief executive officer, Richard Ketchum has presented his year-end report. He notes that FINRA's "first truly effective case addressing high frequency trading" occurred this September. The regulator fined New York-based Trillium Brokerage Services LLC $2.3-million, and suspended 11 of its employees for using a HFT strategy to gain an advantage. FINRA says Trillium repeatedly entered orders which created a false appearance of buy- or sell-side pressure, prompting other traders to buy and sell before Trillium quickly cancelled its own orders. Finra says nine Trillium traders were able to trade at advantageous prices on 46,000 occasions. The brokerage did not admit or deny the charges but did consent to the entry of the findings. Over 2010, FINRA says it levied $41.1-million in fines. In the New Year, Mr. Ketchum says FINRA will watch for price manoeuvring by brokerages.
Also this year, New York University's Courant Institute of Mathematical Sciences told Reuters it received 650 applicants for the 35 spots in its financial engineering masters program. During the 18-month course, experienced high frequency traders teach students how to write and use HFT algorithims. It costs $46,000 (U.S.). The university says it has placed 100 per cent of its financial engineering graduates since the program begin in 1999, and the graduates earn an average of $95,000 in their first year of work -- presumably not working at FINRA.