TORONTO STOCK EXCHANGE
AMENDMENTS TO TORONTO STOCK EXCHANGE RULE BOOK – MARKET MAKING
NOTICE OF COMMISSION APPROVAL
The Ontario Securities Commission has approved proposed amendments to the TSX Rule Book (“Proposed Amendments”) and Form 21-101F1 Information Statement Exchange or Quotation and Trade Reporting System to reflect enhancements to TSX’s market making program. The Proposed Amendments, among other things, create a new class of secondary market makers (“SMMs”) for listed securities in addition to the current primary market makers, and establish an assignment process for SMMs.
The Proposed Amendments, together with certain other changes to the TSX’s marketplace functionality, were published for public comment on April 6, 2017. Eight comment letters were received. In response to comments from participants and regulators, the TSX has withdrawn the proposal that the execution of Minimum Guaranteed Fill (“MGF”) trades be at the protected National Best Bid and Offer instead of the TSX Best Bid and Offer. The TSX will also impose a cap on Market Maker Participation fills when only one of two Market Makers is participating, to ensure that its Participation fills do not exceed its individual MGF size. A summary of the comments and the TSX’s responses, as well as the text of the Proposed Amendments as approved can be found on the Commission’s website at www.osc.gov.on.ca.
The Amendments will be effective in late 2017.