Aequitas Innovations Inc.
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| Aequitas Innovations Inc. | |
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| Founded | 2013 |
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| Headquarters | Toronto, ON, CA |
| Key People | Jos Schmitt, CEO |
| Products | Stock Exchange |
Aequitas Innovations Inc. is the parent company of the Aequitas NEO Exchange, a stock exchange based in Toronto that was launched on March 27, 2015.[1]
Private equity firm Vernon & Park Capital is a shareholder of Aequitas Innovations.[2] The Canadian division of Invesco Ltd. is also a backer.[3]
Background[edit]
In June 2013, Aequitas announced its intention to create a new Canadian stock exchange to rival the Toronto Stock Exchange, backed by a number of Canadian institutions and corporations. Its aim is to challenge “certain predatory high frequency trading strategies which have impacted the quality of existing equity markets.”[4] Aequitas also plans to operate as a listing venue and build a centralized platform for private securities that will focus on capital raising and liquidity for small and mid-sized issuers.
On September of 2013, the Ontario Securities Commission (OSC), published for a 45-day public comment on discussions about the proposed trading structure of the new exchange.[5][6] After a thorough review of the proposal and related comments, the OSC informed Aequitas that it could not support the proposal as published. In particular, the proposal included restrictions on access to visible orders which do not conform to existing requirements of the regulatory framework, including fair access.[7][8][9]
The company received approval from the Ontario Securities Commission in November 2014 to operate the exchange.[10][11]
In June of 2014, Aequitas entered an agreement with Millennium IT, a subsidiary of the London Stock Exchange Group, as the technology provider for its platform.[12]
Exchange Backers[edit]
The proposed exchange is backed by the following Canadian institutions and corporations:[13]
- Barclays Corporation Limited
- BCE Inc.
- CI Investments Inc.
- IGM Financial Inc.
- ITG Canada Corp.
- OMERS Capital Markets
- PSP Public Markets Inc.
- RBC Dominion Securities Inc.
Key People[edit]
- Jos Schmitt, CEO
- Greg Mills, chairman
- Randee Pavalow, chief compliance officer; legal
- Annie Ropar, CFO
- Karl Ottywill, COO
- Joacim Wiklander, chief trading and data officer
Position Paper[edit]
The position paper explaining the rationale for Aequitas, its proposed structure and the proposed implementation timeline, is embedded below.
References[edit]
- ↑ New stock exchange aims to challenge TSX. The Canadian Press.
- ↑ Vernon and Park Invests in Aequitas NEO Exchange. Traders Magazine.
- ↑ Top trader sees hope for better market conditions amid Aequitas NEO Exchange launch. Financial Post.
- ↑ 'Out of sync' markets built on ‘predatory’ trades prompt group to pitch TSX rival. Financial Post.
- ↑ OSC launches public consultation on new stock exchange. Financial Post.
- ↑ OSC STAFF NOTICE AND REQUEST FOR COMMENT REGARDING PROPOSED STRUCTURE OF TRADING FACILITIES FOR A NEW EXCHANGE PROPOSED TO BE ESTABLISHED BY AEQUITAS INNOVATIONS INC.. OSC.
- ↑ OSC NOTICE REGARDING PROPOSED STRUCTURE OF TRADING FACILITIES FOR A NEW EXCHANGE PROPOSED TO BE ESTABLISHED BY AEQUITAS INNOVATIONS INC.. Financial Post.
- ↑ Aequitas Letter of Support Summary related to OSC Requests for Comment. Aequitas Innovations.
- ↑ Aequitas Questionnaire Summary related to the OSC Request for Comments. Aequitas Innovations.
- ↑ Aequitas Aims for 20% Share After Exchange Wins Approval. Bloomberg.
- ↑ Bay Street may have to make some room for second stock exchange. Vancouver Sun.
- ↑ New Canadian exchange Aequitas chooses MillenniumIT for tech platform. Finextra.
- ↑ Aequitas Neo Exchange Names Designated Market Makers. Traders Magazine.