‘Investors’ confidence in capital markets is negatively affected’
Continued from FP1
These include “inaccurate identification of brokers” participating in certain transactions, time stamp deficiencies, content discrepancies across data feeds, and “dissemination of data to certain subscribers” prior to TMX Information Processor.
The filing says the “midpoint peg transaction issues” have been corrected by Omega Securities, but it is alleged that “Omega ATS and Lynx ATS continue to inaccurately record, store and disseminate information” with respect to the other items.
In failing to comply with its governing policies, OSC staff says Omega Securities has failed to comply with its obligation to provide timely, accurate and efficient disclosure of information. Without this, the document says, “regulators are unable to properly protect investors; capital markets are prevented from operating in a fair and efficient matters; and investors’ confidence in capital markets is negatively affected.”
Omega ATS began operations on Dec. 6, 2007, becoming the second venue in Canada to offer traders an alternative execution platform to traditional exchanges such as the Toronto Stock Exchange.
According to Omega Securities’ website, the trading system surpassed one million shares traded by March of 2008.
It now operates two alternative trading systems, Omega ATS and Lynx ATS.
The latest market share statistics published by the Investment Industry Regulatory Organization of Canada for the period ended Sept. 30 show that the volume traded by Omega dropped in the third quarter. Still, the trading venue captured about four per cent of the volume and five per cent of the value traded over the past four quarters.
The Toronto Stock Exchange and Venture Exchange dominate with more than 57 per cent of the volume and 55 per cent of the value.
But Omega’s market share isn’t far behind other trading rivals such as Alpha and Aequitas.