TMX Group Ltd. is already in the process of "testing alternative structures and technologies" to avoid another outage in the future, according to CEO Louis Eccleston.
TMX abruptly halted trading on the Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange and Montreal Exchange shortly before 1:40 p.m. ET on April 27 due to an outage caused by a data storage equipment failure. Trading resumed when markets opened April 30.
The shutdown was an "unprecedented" event and was only the second time that TMX had experienced in nearly a decade, Eccleston said during a conference call to discuss earnings,. The appliance that caused the issue has been replaced and the "permanent patch" is already added, he said. TMX is not just exploring technologies that could help, but is actually testing them to ensure that no such event happens in the future.
"This problem is behind us and now we've got to work to regain that confidence and trust, but it's something you just have to work through," Eccleston said.
One analyst on the call asked the CEO how, in the wake of the outage, TMX would be able convince regulators that it should be the "lone solution" for market-on-close orders. Eccleston said that regulators should focus on it being the "preferred venue for trading" and where the "best bidder offer happens over 90% of the time."