RT Participation & MGF

Minimum Guaranteed Fill (MGF)

Market Maker firms and their Registered Traders (RTs) must also guarantee automatic complete fills at the TSX Best Bid & Offer (BBO) for marketable client orders that are equal to or less than the MGF size when there is insufficient size at the TSX BBO to fill the incoming MGF eligible order.

The MGF facility is generally intended to facilitate the execution of small investor orders, subject to certain conditions. The MGF facility is not intended for systematic and/or repeated MGF access by sophisticated high volume or high frequency clients. If a particular MGF trade is subsequently deemed to be unsuitable for MGF, the Market Maker has the discretion to request that unsuitable trades be cancelled, with the cancellation costs attributed to the customer that neglected to mark its unsuitable client order as MGF ineligible.

RT Participation Feature

Registered Trader (RT) participation is an optional Market Maker incentive that enables RTs to trade passively at the TSX BBO when they do not have an order at the top of the book, or do not have an order in the book at all. RTs can turn on “participation” independently for each side of the market in their assigned securities. When participation is turned on the TSX will automatically generate “participation” orders for the RT to trade with up to 40% of ANY incoming order that is MGF sized or less. MGF eligible orders are not affected by RT participation and these orders continue to be guaranteed by the RT at the best displayed price, however even marketable MGF sized client orders which are marked MGF-Ineligible will be guaranteed at the TSX BBO when RT participation is on for that side of the market.

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