TSX Market Maker Proposed Amendments

May 8, 2017

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TSX Market Maker Proposed Amendments

Letter Summary:

The TSX has proposed changes to the TSX Rule Book and to certain marketplace functionality to make changes to its market maker program. The program would be expanded from a single maker model to a dual market maker model, where a listed security may have both a primary and a secondary market maker assignment, each with specific obligations. The program would introduce requirements and processes specific to secondary assignments, with the intention subsequent to a transition period to have both market makers operate under the same set of requirements. 

Overview of the Council’s Comments:

The CAC agrees that market makers can play an important role in the capital markets by providing price discovery, liquidity and stability. Therefore, it encourages TSX efforts on the introduction of a dual market making system. However, the council is concerned on some practical issues involving fair access, consistency and competition and suggests a broader review of market making and applicable market structures rules.