TSX DRK Liquidity Guide

18 Other conditions where DRK Midpoint Peg or CMO+ orders may be placed in a non-executable state include where the Protected NBBO is locked or crossed, or where there is there is no Protected NBB or Protected NBO. 7.4 Executable Price 7.4.1 DRK Primary Peg • If the offset is 0, executable price of the DRK Primary Peg order = Same side Protected NBBO. • If an offset is supplied, the executable price of the Primary Peg order = Same side Protected NBBO +/- offset. • If the limit price of the DRK Primary Peg order is less aggressive than its pegged price, the order will be executable and/or book at its limit price. 7.4.2 DRK Market Peg A DRK Market Peg order with no offset or a 0 offset will be booked at 1 tick inside the opposite side Protected NBBO, with a cap price of its entered limit, or for market priced orders, capped at the TSX bid/ask tick limit. 7.4.3 DRK Minimum Price Improvement (MPI) Peg • Upon entry where the spread is greater than two ticks, a DRK MPI Peg will be booked at 1 tick more aggressive than the same side Protected NBBO or midpoint when the spread is two ticks or less. • If the limit price of the DRK MPI Peg order is less aggressive than its pegged price, the order will be booked at its limit price. 7.5DRK Limit Executable Price When assigning an executable price to DRK Limit orders, the system will take into consideration the limit price (if supplied) and the symbol’s Protected ABBO. A buy DRK Limit order’s executable price will be the lesser of the order’s limit price (if supplied) and the Protected ABO. A sell DRK Limit order’s executable price will be the greater of the order’s limit price (if supplied) and the Protected ABB. A DRK Limit order with a market price will have an Executable Price of the opposite side Protected ABBO. Please see Appendix 1.0.3 for an example of a DRK Limit order’s Executable Price being assigned. DRK Limit orders with a MIS or MinQty instruction will not book at prices that will lock or cross the TBBO. Instead, they will be rolled back and booked at the following: Buy DRK Limit order will book at the TBO - 1 tick Sell DRK Limit order will book at the TBB + 1 tick 7.6Executable Price Reassignment Due to Small Order Bypassing a DRK Limit When an away market contributes to the Protected NBB or Protected NBO, a DRK Limit order resting at this price will only be eligible to trade with Large Orders at the Protected NBB/NBO, and after any displayed liquidity on TSX/TSXV at that price is exhausted. If a contra order is determined to be a Small Order (see 1.3 Glossary) the DRK Limit order will be ineligible to trade at this price as it is not providing meaningful price improvement on the execution. If the Small Order has remaining volume that establishes a new quote and the DRK Limit order is now locking or crossing the Small Order, the DRK Limit order’s Executable Price will be reassigned 1 tick off of the quote established by the Small Order.

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