The Canada Pension Plan Investment Board has confirmed it will invest in an alternative trading system that will compete with the Toronto Stock Exchange.
The board will pay $17.5 million for a 10% interest in Alpha, an automated trading system backed by BMO Capital Markets, CIBC World Markets, National Bank Financial, RBC Capital Markets, Scotia Capital, TD Securities and Canaccord Capital.
Donald Raymond, senior vice-president of public market investments at the CPPIB, tells Reuters that the investment will help cut trading costs and also provide good returns.
Alpha is scheduled to launch sometime next year, subject to receiving final regulatory approval.
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