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  ETF trade volume by fund class (TSX) (YTD to May 2020)
Multi-asset class
 Source: TMX Group Ltd.
   volume,” says Schmitt. “Volatility was so high that market makers were constantly adjusting their bids. [Everyone’s] infrastructure was put under extreme pressure.”
NEO used the March 21–22 weekend, when markets were closed, to increase platform capacity with upgrades to its computer centres, Schmitt says.
Exchanges and ATS also compete on pricing and the services they offer dealers to attract a share of trading volume.
Competition creates downward pressure on the fees that trading plat- forms charge, Straus says: “Running a stock exchange, from one angle, appears to be a commodified service; from another angle, it’s extremely complex, sophisticated and technically demanding with a lot of invest- ment and technology required.”
The TSX was the first exchange to list an ETF 30 years ago. “We have a long history of listing ETFs, so the vast majority of Canadian ETFs are found on our marketplace,” says Graham MacKenzie, head of ETFs and structured notes with TMX Group Ltd. “People are confident that funds will be available and visible.”
ETFs listed on the TSX may also trade on other exchanges and ATS, and the majority of ETF volume is currently traded on non-TSX platforms.
As of May, according to NEO, 42% of Canadian ETF volume was traded on a TMX-owned platform, compared with 35% on a NASDAQ- owned platform, 18% on a NEO platform, 3% on an Omega platform and 1% on the CSE. (Numbers do not add up to 100% due to rounding.)
This fragmentation of ETF trading volume, when added to fragmented information, can result in some advisors and investors making decisions based on incomplete data.
ETFs listed on NEO trade only on NEO platforms. This is a big advantage, Schmitt says, because it “solves the problem of unconsoli- dated market data, and the fragmentation of an ETF’s trading activity can be used to take advantage of long-term investors.”
According to Schmitt, high-frequency traders can exploit a price differential when the same ETF is traded in different markets or take advantage of a market maker who doesn’t have the same 22
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