TSX Market Making Program Guide Responsibilities of Market Makers TMX Group Page 12 marketplace. A higher score is achieved when Market Maker participation is relatively high as compared to the average Market Maker’s participation within the associated security tier classification (based on value traded). The calculation excludes block trades and crosses in which the Market Maker did not participate. Participation Ratio (“PR”) = Market Maker value traded/total value traded PR Ratio Ranges Points Awarded PR stock ≥ 125% of PR tier avg 100 75% ≤ PR stock < 125% of PR tier avg 75 50% ≤ PR stock < 75% of PR tier avg 50 25% ≤ PR stock < 50% of PR tier avg 25 PR stock < 25% of PR tier avg 0 3. Liquidity Ratio Liquidity measures the proportion of trading that occurs within the spread goal. Market Makers achieve a higher score when a higher proportion of value traded is conducted within the spread goal. Liquidity Ratio (“LR”) = value traded within the spread goal/total value traded LR Ratio Ranges Points Awarded LR stock ≥ 95% 100 90% ≤ LR stock < 95% 75 80% ≤ LR stock < 90% 50 60% ≤ LR stock < 80% 25 LR stock < 60% 0 3.1.2 Underperformance – ETFs Each month, TSX advises ETF Market Makers of their securities of responsibility that underperformed in the previous month. All securities of responsibility with a score below 60 in the prior three consecutive months are placed on a probationary list. Securities of responsibility for which the security score has not improved to 60 or greater by the end of the fourth month may be re-assigned to another Market Maker. Exemptions may be made at the discretion of TSX in certain cases. Issuer endorsed Market Makers are still subject to performance measurement, regular reporting and the underperformance policy described in this section. However, TSX may maintain an issuer endorsed assignment at the issuer’s request irrespective of underperformance. 3.1.3 ETF – Monthly Tier B Credits and Tier A Bonus Incentive Pool Tier B Symbol Credits A Tier B symbol credit per symbol of responsibility per month is awarded to ETF Market
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