Notice and Request for Feedback - Proposed Changes to the Operations of Alpha ATS LP to Enhance CFO Functionality - Alpha ATS LP

Market Regulation Document Type
Alpha ATS rule review and notices

On October 23, 2009, Alpha ATS LP published notice of proposed changes to its operations to allow subscribers to change the price and volume of former orders and to change whether a former order is attributed or unattributed. A copy of this notice is reproduced at Chapter 1 of this Bulletin.

Pursuant to OSC Staff Notice 21-703 -- Transparency of the Operations of Stock Exchanges and Alternative Trading Systems, Commission Staff invite market participants to provide the Commission with feedback on the proposed changes.

Feedback on the proposed changes should be in writing and submitted by November 23, 2009 to:

Manager, Market Regulation Branch
Ontario Securities Commission
Suite 1903, Box 55
20 Queen Street West
Toronto, ON M5H 3S8
Fax: 416-595-8940

If the proposed changes do not raise any regulatory concerns, Alpha ATS LP may implement the proposed changes by December 7, 2009.


Alpha ATS LP has announced its plans to implement the changes described below on December 7, 2009. It is publishing this Notice of Proposed Changes in accordance with the requirements set out in OSC Staff Notice 21-703 (October 9, 2009) 32 OSCB 8007. A Subscriber Notice has also been published and is available at (See Subscriber Notice 2009 - 0134).

Description of Proposed Changes and Reasons for Changes

Enhanced CFO Functionality

Alpha plans to allow CFO (amend) of the following order attributes:

a. Price

b. Volume (increase or decrease)

c. Anonymous (add or remove)

The reason for the changes is to address subscriber demand for Alpha to offer CFO functionality equivalent to other Canadian marketplaces

Expected Impact of the changes

Enhanced CFO Functionality

Subscribers will be able to CFO orders to change price, increase order volume, or change the anonymous tag (from attributed to non-attributed or vice versa).

Use of CFO functionality is at the discretion of the subscriber and vendor.


Enhanced CFO Functionality

Alpha received requests for this functionality directly from its Subscribers. It also consulted with its User Committee and has published a Subscriber Notice describing the change.

Current implementation of changes in the Canadian marketplace and any alternatives considered

Enhanced CFO Functionality

Proposed changes to price and volume CFOs are consistent with CFO functionality on other Canadian marketplaces. Proposed change to support CFO of anonymous is consistent with other Canadian marketplaces that support attributed and unattributed orders. No alternatives considered.