Information Systems Strategy at the Toronto Stock Exchange
Noémie Bretton
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September the 10th 2014
Information Systems Strategy at the Toronto Stock
Exchange
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The exchange industry is undergoing a transformation brought about by globalization of financial markets, consolidation of exchanges, and the introduction of new competitive players due to technological advancements. The Toronto Stock Exchange (TSE) is Canada's largest equity market and has created and started to implement a plan to deal with these threats. Concurrently, the TSE has been recreating its technological platform, moving from its computer assisted trading system to the Torex system purchased from the Paris Bourse.
Implementation problems have delayed the project from its original release date to three years later.
During the time frame of this implementation, the TSE suffered several computer glitches causing closure of the exchange for temporary periods of time. The president and CEO needs to review the priorities of the TSE and consider what actions she should take to ensure the successful implementation of this new technology, and the long term alignment of information technology with
TSE business strategies.
The main issues for the Toronto Stock Exchang (TSE) company has been task of reconstructing the
TSE to succeed in the face of significant industry and technological change.
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The recommendation for this case would be to focus on the security and the problems related to the system TOREX. Indeed, in this domain programs interruptions or issues with the system can make loose a lot of customers and money. TSE should invest in qualified employees and in Research and
Development to improve his system for trading shares. Advances in technology included extensive connectivity and very low communication costs. Having low cost, advanced tech creates a competitive advantage against other companies.
Furthermore, TSE should focus on the two key ingredients for successful exchange: liquidity and quality. Liquidity is
!
!
September the 10th 2014
Information Systems Strategy at the Toronto Stock
Exchange
!
The exchange industry is undergoing a transformation brought about by globalization of financial markets, consolidation of exchanges, and the introduction of new competitive players due to technological advancements. The Toronto Stock Exchange (TSE) is Canada's largest equity market and has created and started to implement a plan to deal with these threats. Concurrently, the TSE has been recreating its technological platform, moving from its computer assisted trading system to the Torex system purchased from the Paris Bourse.
Implementation problems have delayed the project from its original release date to three years later.
During the time frame of this implementation, the TSE suffered several computer glitches causing closure of the exchange for temporary periods of time. The president and CEO needs to review the priorities of the TSE and consider what actions she should take to ensure the successful implementation of this new technology, and the long term alignment of information technology with
TSE business strategies.
The main issues for the Toronto Stock Exchang (TSE) company has been task of reconstructing the
TSE to succeed in the face of significant industry and technological change.
!
The recommendation for this case would be to focus on the security and the problems related to the system TOREX. Indeed, in this domain programs interruptions or issues with the system can make loose a lot of customers and money. TSE should invest in qualified employees and in Research and
Development to improve his system for trading shares. Advances in technology included extensive connectivity and very low communication costs. Having low cost, advanced tech creates a competitive advantage against other companies.
Furthermore, TSE should focus on the two key ingredients for successful exchange: liquidity and quality. Liquidity is