Order Types and Functionality Guide

40 Allocation of securities of responsibility Securities allocations are considered firm privileges and responsibilities. These allocations are awarded when securities are newly issued and when there are changes in responsibility. The TSX Allocation Committee determines which firms are awarded securities to manage as Market Makers based on among others: 1. A firm’s overall performance in managing existing responsibilities; 2. A firm’s competitive service level bids; 3. A firm’s ability to remain within its qualification requirements; and 4. Special request by issuers. Qualification requirements of a Market Maker firm Generally Market Maker firms are required to: • Maintain sufficient firm capital based on the classification in securities of responsibility; • Maintain a minimum number of assignments so as to maintain their presence; and • Maintain a certain ratio of assignments in highly liquid versus less liquid securities. 5.1.1 Odd Lots RT’s are obligated to provide an automatic immediate fill for incoming tractable odd lots at the Protected NBBO. Odd lots resting in the TSX odd lot book which later become tractable due to a change in the Protected NBBO are also automatically filled by the RT at the Protected NBBO. Odd lot matching is suspended if the Protected NBBO is locked or crossed and will resume immediately when the Protected NBBO changes such that It is no longer locked or crossed. If the odd lot order’s price is not marketable (or if there is no RT) the odd lot order is displayed in the odd lot book and is eligible to trade continuously at its limit price (without regard to the CLOB price) and will trade at that price if an opposite side odd lot order is entered with the exact same volume priced at or better than the resting odd lot order’s price. Odd lots only trade as FOK which means partial fills are not accepted. It is possible for the odd lot book to display orders with overlapping prices when resting odd lot orders can match on price but not on volume. 5.1.2 Minimum Guaranteed Fill (MGF) Size RT’s must also guarantee automatic complete fills for marketable, board lot-sized, client orders that are equal to or less than the MGF size plus the size of the opposite visible TSX best bid or offer. The MGF size is a publicly disclosed volume threshold that can change during the day at the RT’s discretion. Orders at or below the MGF size that contains the client marker must declare whether they are eligible for MGF fills. All orders marked other than “client” are not MGF eligible. The MGF facility is intended to fill small retail investors with positions that are smaller than average. The MGF facility is not intended for systematic and/or repeated MGF access by sophisticated high volume or high frequency clients. In order to interact with the MGF facility, orders must be sent through a pre-qualified MGF-eligible Trader ID. If a particular MGF trade is subsequently deemed to be unsuitable for MGF, the trade is cancelled with the cancellation costs attributed to the customer that neglected to mark its unsuitable client order as MGF ineligible. Example: MGF Size Assume the CLOB is as follows: RT: AVGJOE MGF: 500 BID OFFER Order # Quantity Price Price Quantity Order # 001 100 10.00 10.02 400 002

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