Sola Trading

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Sola TMX technology Solutions
Type Derivatives Trading Clearing Surveillance Technology
Location Montreal, Quebec, Canada
Coordinates 45°30′2″N 73°33′42″W / 45.50056°N 73.56167°W / 45.50056; -73.56167
Founded 2005
Owner TMX Group
Website www.tmxtechsolutions.com/sola/

Sola Trading is an electronic trading system that manages the transactions of securities products for Derivative Exchanges.[1] It supports the trading of various types of derivative models across all asset classes in cash, commodity and fixed income markets.

The trading platform is currently being used for the trading of options, futures, forwards and other exchange-listed derivative securities by five major derivative exchanges globally:

History[edit]

The Sola Trading Platform was both designed and developed by The Montreal Exchange (Bourse de Montréal)[7] which is now a fully owned subsidiary of the TMX Group.

The First exchange to go Live with the Sola Trading platform was the Montreal Exchange (Bourse de Montréal) Derivates Market (Montreal Futures Exchange and the Canadian Options Market) on October 24, 2005.[8]

On May 25, 2009, the TMX launched SOLA Clearing, a real time platform used by the Canadian Derivatives Clearing Corporation.[9]

In May 2009, the Sola Trading was licensed to the London Stock Exchange Group for use by EDX London and Oslo Bors, and for the LSE's IDEM Italian Derivatives market.[10] Both EDX and Oslo Børs launched 7 months later onto the Sola Platform on December 7, 2009,[11] and IDEM Italian Derivatives market went live on Sola on November 8, 2010.[12]

Turquoise,[13] Derivatives Platform Launched on Sola June 6, 2011 and started with the addition of FTSE Index 100 Futures contracts and has expanded to have FTSE 100 Options contracts on September 26, 2011[14] This fast growing high speed exchange has been recognized as the award winner of the "Best New Derivatives Trading Platform/Service" by the Financial News Awards for Excellence in Trading and Technology, Europe 2011[15]

The SOLA technology of TMX is recognized as one of the "Big 3" suppliers of trading technology to exchanges around the world, competing with NYSE Euronext and Nasdaq OMX.[16]

Structure[edit]

SOLA Trading[edit]

The Sola Trading platform has its own native communication protocol called Sola Access Information Language (SAIL)[17] as its primary form of front end access communication protocol, and also supports FIX Protocol and STAMP Protocol. Sola currently uses High Speed vendor Feed (HSVF) as its market data vendor protocol[18]

SOLA Clearing[edit]

TMX SOLA technology has also successfully deployed a derivative Central Counterparty Clearing Platform called SOLA Clearing as one of its Post Trading Services Modules. This platform is designed to support clearing and settlement of a full range of products across all asset classes in cash, commodity and fixed income markets.[19] It supports the clearing and Settlement of both exchange trade and Over-the-counter products including futures and options. It is the only exchange in North America that Supports the clearing of Options on Futures.[20]

SOLA Clearing has been chosen by the Investment Industry Association of Canada (IIAC) to develop the infrastructure for central counterparty services to the Canadian fixed income market,[21] which was successfully launched and fully operational on February 22, 2012.[22]

SOLA Surveillance[edit]

TMX SOLA technology has also successfully deployed Market Regulatory technology currently being used by Market Surveillance teams at the Montreal Exchange (MX) and the BOX Options Exchange by its appointed Self-regulatory organization (SRO).[23]

References[edit]

  1. ^ About Sola "source 1"
  2. ^ M-X Homepage with Link to Sola Platform information"source 2"
  3. ^ Automated Trader Exchange News, December 7, 2009 "source 3"
  4. ^ Turquoise Derivative Launch "source 4"
  5. ^ Oslo Børs Publication December 7, 2009 "source 5"
  6. ^ WFE World Federation of Exchange Publication November 9, 2010 "source 6"
  7. ^ M-X Homepage with Link to Sola Platform information"source 7"
  8. ^ Sola Launch Press release "source 8"
  9. ^ About CDCC "source 9"
  10. ^ LSE press release "source 10"
  11. ^ LSE press release "[1]"
  12. ^ Idem launch press release "source 11"
  13. ^ Tradeturquoise.com, April 11, 2011 "source 12"
  14. ^ Tradeturquoise.com, September 26, 2011 "source 13"
  15. ^ Financial News Events, Tuesday October 4, 2011 "source 14".
  16. ^ Italian Derivatives Market Adopts Canadian Trading Platform "source 15"
  17. ^ M-X Circular introducing the SAIL Protocol"source 16"
  18. ^ TMX Product sheet for HSVF"source 17.
  19. ^ List of Sola Products "source 18"
  20. ^ CDCC product types "source 19"
  21. ^ About CDCC OTC Fixed Income "source 20"
  22. ^ About Launching of CCP Fixed Income "source 21"
  23. ^ BOX GRANTED SRO APPROVAL FROM U.S. SECURITIES AND EXCHANGE COMMISSION "source 22"

External links[edit]