Dark Trading

TSXV Dark Midpoint and Dark Limit order types are integrated with Canada's most extensive displayed order book providing tremendous value by offering meaningful price improvement, significantly reducing trading costs and increasing valuable liquidity seeking options.

  • Dark mid-point orders will always provide meaningful price improvement of at least a full trading increment unless the NBBO spread is one trading increment. In this case the price improvement provided will be half a trading increment.
  • Dark limit orders will provide meaningful price improvement to small orders. However, large orders will be eligible to trade at the NBBO once all visible volume is exhausted on the marketplace where the dark order is resting.

Dark orders interact with displayed orders as well as other Dark orders through one allocation sequence according to price-visibility-broker-time priority, ensuring the priority of displayed orders over Dark orders.

Benefits to Posting Dark:

  • FREE, there is no cost to post dark orders
  • Continuous exposure to the primary displayed venue, the most 'streaming liquidity' in Canada, and therefore the best possible fill opportunities
  • Facilitates the execution of large blocks which may be difficult to achieve on transparent markets due to lack of depth in the order book
  • Protect client's proprietary trading information through complete pre-trade anonymity - no IOIs or selective access

Benefits to Seeking Dark:

  • Provides liquidity takers with both meaningful price improvement and lower transaction costs (i.e. taker fee)
  • Low cost : Virtually no technology or integration costs - no additional routing destination, no "Opt In" requirement and available to all market participants
  • No need to 'ping' separate dark pools - by sending an order to TSX or TSX Venture Exchange, we will automatically seek dark opportunities, while executing at the best visible price with trade through protection
  • Low latency dark trade executions through the TMX Quantum® technology with a single allocation sequence

Pre-trade Transparency

There is no pre-trade transparency of Dark orders; meaning order responses and changes in order attributes are not disseminated publicly. All order responses are fully encrypted in the Broadcast feed.

In accordance with regulations, there is full post-trade transparency of Dark execution prices which will update the last sale price and be provided to the TMX information processor's Consolidated Last Sale (CLS™) feed. However, all Dark tag details are classified as private content and therefore fully encrypted.

Minimum Quantity

An optional Minimum Quantity instruction is available for Dark Midpoint orders which will prevent the order from participating in a trade unless the tradable volume meets or exceeds the volume specified through the Minimum Quantity instruction. The Minimum Quantity instruction will only be accepted if the volume provided in the Minimum Quantity tag meets or exceeds 20 standard board lots. To better assist institutions and users in reducing market impact and to enhance TMX Dark Order types as a valuable facility for the execution of larger sized orders, Dark Midpoint orders with a Minimum Quantity instruction will receive fill priority over other Dark Midpoint orders without this condition or Dark Limit orders at the same price level.

For more information, please see:

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