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(February 28, 2008) It’s getting hard to distinguish financial trading platforms from works of science fiction. The TSX has announced the launch of a new high-velocity alternative trade book system, which the company has dubbed — at least internally — TSX Photon. It will operate alongside the central limit order book, named TSX Quantum.

“The TSX Photon marketplace will offer the core functions and market structure adaptations that are critical to high-velocity strategies,” said Thomas Kalafatis, vice-president, TSX Markets. “Specifically, TSX Photon will be based on a first-in first-out price–time priority allocation and provide full broker anonymity.”

The launch of the new platform is slated for 2009, pending regulatory approval and construction of a proprietary “smart order router.” All participating organizations connected to the TSX’s original central limit order book will have access upon lift-off.

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Canadians doing better on debt payments

(February 28, 2008) Despite all the noise about a nation wallowing in debt and rising credit defaults, more Canadians are actually paying their bills on time, according to Equifax Canada.

Between June 2005 and December 2007, the average national delinquency rate declined by 21%. The greatest improvements came in the timely payment of credit cards, term loans, and personal lines of credit.

By and large, Canadians have been doing a pretty good job at making their payments, and the delinquency rate fell from 1.6% to just 1.2% over the span of the study. A delinquent account is defined as one that is at least 90 days past due.

“Our data reflects that a strong economy and low unemployment have enabled more consumers to make their payments on time, despite rising personal debt,” said Nadim Abdo, vice-president of Equifax Predictive Sciences.

Equifax also broke down the data by municipality and found that Quebec City has the lowest delinquency rate, at just 0.67%, while Toronto was home to a delinquency rate of 1.73%.

Now the bad news. The same study found that the average Canadian’s non-mortgage debt load is at an all-time high.

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Policyholders vote to demutualize Unity Life

(February 28, 2008) Policyholders at Unity Life of Canada have voted overwhelmingly — 98.9% — in favour of the company’s sponsored demutualization.

Back in August 2007, Unity Life entered an agreement to be acquired by Foresters, with Unity Life becoming the public face of Foresters in the Canadian market. Unity Life policyholders will receive cash for their shares in the insurer.

“The decision taken today by Unity Life policyholders represents an important milestone for Unity Life,” said Tony Poole, president and CEO of Unity Life. “This partnership will provide the financial backing and access to capital we need to realize our Canadian growth strategy, while continuing to operate under the Unity Life brand in the Canadian market.”

The deal will deliver an average payout of $3,300 to Unity Life’s 15,000 policyholders. The entire transaction is expected to be completed in April 2008.

(02/28/08)