Omega Securities Inc. (OSI), operators of Omega ATS and Lynx ATS for exchange-listed equities and fixed income instruments, today announced the appointment of Mr. Sean Debotte as President and CEO. Mr. Debotte has 12 years of industry experience and joined Omega as Director of Business Development in 2011. His diverse expertise will bring a new perspective to the company and a wealth of knowledge to this role.
"We are pleased Sean accepted this appointment to CEO," said Rick Ness, Chairman of Omega ATS Inc. "His background includes both securities trading and industry sales, which makes him the ideal person to lead Omega by offering innovative pricing, new order types and enhancing functionality for our subscribers and vendors."
Along with the addition of a new CEO, OSI will launch Lynx ATS, a new trading venue on February 3rd, 2014. The marketplace will deploy an interim maker/taker style pricing model at first but, OSI is seeking regulatory approval for a Dynamic Pricing Model unlike any other fee schedule currently offered in Canada.
Lynx ATS will be the first and only ‘pay as you trade’ venue in the country with no market data fees, no subscription fees, and no connectivity fees. All order entry and market data protocols will be the same as Omega ATS with the same strict price/time matching priority. Other than pricing, the only other distinct difference between the two marketplaces will be that broker attribution will be the default.
“Although the standard maker/taker pricing model is quite popular in Canada, we feel that there is a problem in the way intermediary market makers are remunerated for providing liquidity,” states Mr. Debotte. “We understand that the rebate structure is designed to incent participants to close spreads and thereby reduce overall trading costs to the end investor. However, there is no discrimination between the rebate paid on highly liquid symbols that often trade at the minimum tick spread and lower volume securities that typically trade wider.”
Canadian trading venues that offer standard maker/taker models handle roughly 85% of all volume traded. By contrast, more exotic schedules such as the inverted pricing offered by Omega ATS make up the difference. Lynx ATS’s proposed dynamic pricing is still under regulatory review and, pending approval, may be implemented as early as the first trading day of April, 2014. The interim schedule can be found on the Omega ATS website.