08.19.2011
By Terry Flanagan

CIBC Launches New Trading Engine

CIBC World Markets has introduced a new trading engine that it said combines fast processing speed with risk management checks, putting all equity investors on even ground.

The broker-dealer’s new Central Order Routing System, or CORE, launched Aug. 18. The trading engine incorporates a “smart routing system, with regulatory risk filters above the current market requirements, with ultra-high-speed access,” said James Beattie, head of equity trading execution and distribution at CIBC World Markets.

CIBC said the launch of CORE, following a planning period of nearly three years, marks the culmination of extensive client input and research conducted in alignment with the company’s goal of bringing together and expanding order flow. “All of our trading is done in the same manner. It doesn’t matter where the order came from, it matters what the characteristics of the order are,” added Beattie. “We have one trading desk.”

The company asserts that bringing together order flow, regardless of whether it was from a retail client or an institutional client, benefits all market participants, and essentially places everyone on an even playing field.

“CORE provides fair and equal access, and a fair and level playing field,” said Thomas Kalafatis, head of prime services at Toronto-based CIBC. “It allows all clients to benefit.”

“CORE is a business philosophy first,” Kalafatis continued. “We’re trying to foster the communication between the buyer and seller. Our focus is on growing the market, making trades that weren’t happening before, happen now, and introducing new market participants.”

In addition to satisfying the demands of its clients, CIBC also believes that the introduction of the new trading system will help to further attract additional clients to not only its firm, but to the Canadian markets.

“Our track record has demonstrated that CIBC is able to attract new participants quite well,” Kalafatis said. According to Kalafatis, in the mid 2000s, around 20 to 30 percent of liquidity in Canada came from outside its borders. That number has now swelled to more than 50 percent. “CORE will attract people to come to Canada, which benefits all Canadians,” he added.

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