FAQ
Q: What securities are eligible?
Omega ATS will publish a list of securities that are eligible to trade through Omega ATS. All securities must be eligible for CDS, not be inter-listed in Canada and be native to one of the NYSE, AMEX or NASDAQ stock exchanges.
Q: How will the securities be quoted?
The securities trading through Omega ATS will display Bid, Asked and Last Sale priced in Canadian Dollars. Last sale information will be based solely on activity through Omega ATS and not the securities’ native exchange. Where there has been no activity on a particular issue the last sale price will show as 0.00. Board lots will follow the standard convention followed for Canadian securities. Odd lot trades are not permitted.
Q : How Does the exchange rate to Canadian Dollars work for trades in US Securities?
There is no FX component to trading US Securities in Canadian dollars through Omega. Subscribers will enter their Bid and/or Ask directly in Canadian dollars as they would for any listed Canadian security trading through Omega ATS.
Q: What trading systems are required to trade foreign securities?
Trading systems that you currently use should have the ability to enter orders on US securities through Omega ATS. 2 major providers have informed us that they are in a position to accept input on trades in US Securities through Omega ATS and we expect that other front end trade input systems have already made accommodations or will shortly. Please check with your trading system provider to ensure that symbols in US securities trading in Canadian Dollars through Omega ATS will be recognised by them.
Q: How do I figure out the symbol of US securities trading through Omega ATS?
Omega will use the symbol assigned by the security’s native exchange but will add the suffix “.CD” to indicate that it trades in Canadian dollars through Omega ATS.
Q: How will the US trades settle in Canada?
Omega ATS will only facilitate trading in securities that are eligible for settlement through CDS. Most instruments will settle in CDS through in Canadian dollars by continuous net (CNS) just like any trade on a Canadian Exchange on a Trade date +3 basis.
Q: What about Holidays?
Omega will follow the Canadian settlement calendar as Canadian dollar settlements through CDS are not available during Canadian Holidays. No trading of US securities will take place on Omega during US holidays when the Canadian markets are open and the US markets are not. No trading of US securities will take place when the US markets are opened and Canadian markets are not.
Q: If US security is purchased in Canadian dollars through the facilities of Omega ATS, can it later be sold on a US market?
Yes, the US securities that trade through Omega ATS all have a primary native exchange such as NASDAQ, NYSE or AMEX, they are the exact same securities that trade on their native exchanges in US dollars. All regulatory filings performed by these US listed companies trading through Omega ATS have been performed in the US under US rules in their native jurisdictions. Please note that the securities traded through Omega ATS are not listed on an exchange in Canada and may not be securities of a reporting issuer in Canada. As a result, there is no assurance that information concerning the issuer is available or, if the information is available, that it meets Canadian disclosure requirements.
Q: Can a US security who’s purchase originated on a US exchange be sold in Canadian dollars through Omega ATS?
Yes, the US securities trading through Omega ATS are the identical securities to those trading on their native exchange.
Q: What about record dates for dividends and distributions?
As these transactions will be taking place in Canada and settling through CDS all US securities trading through Omega will follow Canadian dividend rules. The Canadian rules vary quite significantly from US dividend rules. US securities declaring a dividend or distribution (or similar corporate action requiring a record date) will be X-Dividend 2 trading days before record date and Cum-Dividend 3 trading days before record date based on the Canadian settlement calendar. There is no Due Bill tracking as there would be if these securities settled through the facilities of NSCC in the US.
Q: If a purchase of a US security in Canadian funds through the facilities of Omega ATS is deemed to be X-Dividend and it is sold on the native stock exchange of that security while it is still Cum-Dividend on that native exchange in the US, would the seller still be liable for the proceeds of that corporate action?
Yes, even though a security may be trading X-Dividend through the facilities of Omega ATS if it is traded on it’s native exchange it is subject to local dividend terms.
Q: What about trading halts?
If a security is halted on it’s native exchange Omega ATS will also halt trading in the security. The halt will be lifted when it is lifted on the security’s native exchange.
Q: Am I obligated under the rules to trade US Securities through Omega ATS?
No, these instruments may still be traded over the counter under the rules. Trades on Omega ATS will be in Canadian Dollars which differs from their native exchange. Although trading these instruments through Omega ATS will provide greater transparency and eliminate the need for additional FX transactions to convert funds to Canadian Dollars, you are not compelled under the rules to trade these instruments through Omega ATS.
Q: Can subscribers holding US securities purchased through the facilities of Omega ATS perform “Southbound” ledger movements once holding the securities?
Yes, the securities are one and the same as identified by the CUSIP or ISIN number.
Q: Are Short Sales permitted?
Yes. Please consult with your compliance department regarding your Firm’s policy concerning short trading.
Q: Is this activity subject to the Universal Market Integrity Rule (“UMIR”)?
UMIR rules that apply specifically to “listed securities” as defined in UMIR are not applicable. Trades in US-listed securities which are not also listed on a Canadian exchange (“foreign exchange-traded securities”) may be executed OTC. If a Participant chooses to transact through a marketplace such as Omega ATS, the transaction would be subject to all provisions of UMIR relating to trading on any marketplaces generally and which are not limited exclusively to “listed securities”. This would included the UMIR provisions respecting abusive trading (including manipulative and deceptive trading), front-running, best execution obligations, client/principal trading and trading supervision obligations.
Q: What security master information will be provided?
Security master information will include Symbol ,Market, Round Lot Size, CUSIP, Currency, Short Indicator andDividend Indicator
Q: Who can I contact if I need additional information?
You can send any questions concerning anything to do with Omega ATS always to support@omegaats.com. If you would like to speak to someone concerning Omega ATS please contact Raymond Tung, Senior VP, Operations at 416-646-2429, or Brian Crew, President & CEO at 416-646-2427 and we will be happy to assist you.
