TSX DRK Liquidity Guide

32 14.1.6 Determining the price for a DRK Minimum Price Improvement (MPI) Peg Starting values: NBBO = (10.00, 10.03) NBBO Midpoint = 10.015 Bid/Ask tick parameter: $0.50 TSX Order book Volume Bid Offer Volume 100 10.00 10.03 100 100 9.95 10.04 100 10.05 100 A DRK MPI Peg order to Buy 100 @ MKT is entered. The trading system calculates the limit price and executable price to be assigned to the DRK MPI Peg order. Limit Price = TSX offer + 0.50 => 10.53 Executable price = NBB + 1 tick => 10.01 14.1.7 Determining the price for a DRK MPI Peg – 1 tick spread Starting values: NBBO = (10.00, 10.01) NBBO Midpoint = 10.005 Bid/Ask tick parameter: $0.50 TSX Order book Volume Bid Offer Volume 100 10.00 10.01 100 100 9.95 10.02 100 10.02 100 A DRK MPI Peg order to Buy 100 @ MKT is entered. The trading system calculates the limit price and executable price to be assigned to the DRK MPI Peg order. Limit Price = TSX offer + 0.50 => 10.51 Executable price = NBB + half tick => 10.005 (NBBO Midpoint)

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