39 Section 5 Market Maker Program& Odd Lot Dealer System 5.1 TSX Market Maker Program The Market Maker program exists exclusively on TSX. The role of the Market Maker is to augment liquidity, while maintaining the primacy of an order-driven continuous auction market based on price-time priority. The Market Maker system maximizes market efficiency and removes the interfering influence of a traditional specialist. In the TSX environment, a Market Maker manages market liquidity through a passive role. Market Makers are visible only when necessary to provide a positive influence when natural market forces cannot provide sufficient liquidity. Responsible Designated Traders (also referred to as Registered Traders or RTs) represent Market Maker Firms and act on behalf of the firm to ensure all responsibilities are met. There may be up to two Market Makers, a Primary Market Maker, and a Secondary Market Maker, on any TSX-listed corporate security. Market Makers do not have any proprietary pre-trade information or access to information regarding trade order entry of other participants. For more information on the program and to view the TSX Market Making Program Guide, please visit: https://www.tsx.com/ebooks/en/market-making/ TSX Market Maker responsibilities: • Call a 2-sided market providing market continuity within a pre-specified range. • Contribute to market liquidity and depth. • Maintain activity in the market. • Fulfill the needs of retail-sized order flow through guaranteed minimums (MGF) that interact with aggressive orders whenever orders in the central limit order book do not meet the size required to fill aggressive orders at the quote (see MGF section below). • Assist in the opening and with inquiries and anomalies. • Service odd lots (see odd lot section below). Performance measurement system TSX continuously monitors the performance of all Market Makers with respect to their ability to contribute to the overall market in terms of creating liquidity, depth and continuity. • Spread Maintenance – Measures the Market Maker’s ability to call a 2-sided market. • Participation – Measures the participation of Market Makers in their security of responsibility. • Liquidity – Measures whether Market Makers are lining the book with reasonable depth.
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