May 4, 2023
Equities Notice 2023-017

TMX Group

TMX Equity Trading Notice

TSX Alpha Exchange Introduces the Static Order Processing Delay

TMX Equities is pleased to announce an updated Order Processing Delay on TSX Alpha Exchange (‘Alpha"), to be effective in Q3, 2023, subject to regulatory approval.

The Order Processing Delay is being updated to statically hold all messages for 1 millisecond instead of dynamically randomizing between 1-3 milliseconds as Alpha currently does today. Orders marked as post only which meet the minimum size requirements will continue to bypass the delay.

The static Order Processing Delay aims to allow liquidity providers protection against adverse selection by providing them time to react and move their passive orders aside when the market is moving against them. Removing the randomization allows participants to deterministically build the processing delay into their liquidity-taking routing strategies, to minimize signaling and aims to optimize execution quality as a whole.

The static Order Processing Delay will be available in GTE on May 5, 2023

For more information regarding this notice, please contact the Account Management Team.