TSX Dark Liquidity Guide

11 3.3 Avoiding the Taking of Resting Dark Liquidity 3.3.1 Bypass Orders Orders that have an obligation to displace displayed orders at the best price while trading on multiple venues can mark their orders bypass to avoid interaction with DRK orders and the undisclosed portion of iceberg orders. 3.3.2 Post Only Orders Marking orders as Post Only will prevent interaction with DRK resting orders upon entry of the Post Only order. Participants can use Post Only to better anticipate trading costs by allowing them to more effectively manage when they are providing or taking liquidity. More detail on Post Only orders is provided in the next section. 4. Conditions on DRK Orders 4.1 Post Only DRK Orders Post Only is available for all DRK orders except for SDL orders. The Post Only order condition on a DRK order will reject the order immediately on entry if any part of the order is immediately executable with a visible order during continuous trading. If the DRK Post Only order is executable on entry with a contra-side resting DRK order, the DRK Post Only order will book at its limit price or pegged value as applicable, and subject to any other pricing constraints to avoid locking / crossing with the Protected NBBO. DRK orders that are re-priced due to quote changes will never take the active side of a trade if they are marked as Post Only. As indicated by the above, two contra-side Post Only DRK orders that are eligible to match based on price will not execute. Instead, both will maintain their price until executing against an active order. In addition, no execution will take place between a resting DRK order and an incoming contra-order marked Post Only with the same price as the resting order. Instead, both orders will sit in the book at the locked price and will not execute against each other unless the first resting DRK order is CFO’d by the trader and becomes a new order in accordance with existing TSX/TSXV CFO handling procedures. In the scenario where the first DRK resting order referred to above is instead a non-Post Only DRK Pegged order, it will only execute actively when a Protected NBBO repricing causes it to become more aggressively priced. 4.2 Minimum Quantity and Minimum Interaction Size DRK orders may be submitted with an optional Minimum Quantity (MinQty) or Minimum Interaction Size (MIS) instruction that specifies minimum volume parameters that must be met for the order to trade. MinQty and MIS are available for use with all DRK orders, specifically DRK Peg, DRK Limit, SDL, and CMO+ orders. 4.2.1 Minimum Quantity MinQty is an optional instruction that may be submitted on DRK orders. This optional instruction will prevent a DRK order from trading unless the total tradable volume meets or exceeds the volume specified in the MinQty instruction.