Frequently Asked Questions

General

  • WHAT IS TSX NAVex?

    TSX NAVex is a new mutual fund platform targeting investment advisors that execute their financial order instructions through an IIROC registered dealer. The objective was to design a business model that would provide the same end-of-day Net Asset Value (NAV) execution that advisors have come to expect from mutual funds, but to also realize the benefits of bulk trading and a lower transaction cost model. The platform will leverage the operational efficiencies of TMX equity order and settlement infrastructure, providing seamless service to TSX-connected dealers.

  • WHAT IS REQUIRED FROM A FUND MANUFACTURER TO PARTICIPATE ON THE PLATFORM?
    • TSX NAVex membership agreement must be signed
    • Products to be posted on the platform must be approved by TSX
    • Products must be CDS eligible
    • Technical certification must be finalized to confirm ability to deliver a standard NAV price file
    • Identification of the manufacturer's designated transfer agent and clearing broker
  • ARE FUNDS ON THE PLATFORM LISTED LIKE A STOCK OR ETF?

    No, funds on the platform are not listed on TSX and are not subject to TSX listing requirements. A precondition for funds to be posted on the platform is that they must be approved by applicable securities regulators.

  • WHAT TYPE OF FUNDS WILL BE POSTED ON THE PLATFORM?

    The platform is designed to bridge the gap from mutual fund providers to advisor-managed discretionary programs and fee-based platforms. As such, it is anticipated that products similar to F-series funds will be posted on the platform.

  • HOW WILL MARKET PARTICIPANTS BE NOTIFIED OF FUNDS POSTED ON THE PLATFORM?

    Funds on the platform will be assigned a ticker symbol and will be included in the TSX symbol reference feed that dealers receive today.

Functional Overview

Clearing and Settlement

  • WHAT IS CDS?

    CDS Clearing and Depository Services Inc. (CDS) is Canada's national securities depository, clearing and settlement hub. It provides for the safe custody and movement of securities, accurate record keeping, processing of post-trade transactions and the collection and distribution of entitlements relating to depository-eligible securities.

  • HOW WILL TRANSACTIONS ON TSX NAVex SETTLE?

    All transactions on the platform will be reported as trades to CDS for T+2 settlement between CDS participants. On the settlement date, TSX NAVex trades will settle via the exchange of cash for fund units in a book entry mode (electronic) between the counterparties.

  • ARE THERE ANY ADDITIONAL RELATIONSHIPS REQUIRED FOR THE FUND MANUFACTURER TO SETTLE FUNDS THROUGH CDS?

    The settlement model requires that each fund manufacturer use three primary CDS participants to facilitate settlement of a transaction.

    Transfer Agent

    The transfer agent is responsible for facilitating the settlement obligations for transactions. The transfer agent will receive treasury directions from the fund manufacturers and then confirm, deliver or withdraw fund units for settlement. The transfer agent will also produce funding letters for cash distributions and fund the distribution through CDS on behalf of the custodian.

    Clearing Broker

    A clearing broker facilitates clearing and settlement of mutual fund trades. If a fund manufacturer becomes a CDS-approved participant, they can perform this function.

    Custodian

    A custodian facilitates the creation and rede

  • WHAT DISTRIBUTIONS ARE ELIGIBLE FOR FUNDS ON THE PLATFORM?

    Fund distributions will initially be limited to cash.

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