With over 200 stocks currently inter-listed on the Toronto Stock Exchange (TSX) and US exchanges, traders need to access liquidity seamlessly in both markets while automatically hedging their currency exposure in real time.

How ITG can help

ITG clients have the benefit of trading US/Canada inter-listed securities using specialized functionality. The ITG Smart Router™ evaluates inter-listed orders against both the US and Canadian markets using the spot FX rate to convert quotes and seek out the best price and liquidity for the order. All fills are returned in the local currency of the initial order.

Orders are constantly managed throughout their lifespan, always targeting the best quotes in both markets. When posting passively, orders are split between the US and Canada based on historical data. The foreign posted orders are updated for limits as FX rates move and require it, and when adjusting posted weightings. All fills are converted with the decision FX rate, not the rate at the time of the fill in order to enforce client limit (this is not an issue as order FX rates are always current).

FX handling is seamless to clients and managed at a firm aggregated view in our Toronto offices. Clients are not exposed to FX risk as all fills are converted back to them in real time. ITG also offers SOR variants which can trade a stock in a foreign market and fill back in the local currency (for instance, BBD.B with fills back in USD, MSFT with fills back in CAD).