TSXV LiquidityPro Program
TSX Venture Exchange will launch a new service in September 2016 that is aimed at helping venture companies enhance liquidity. The LiquidityPro™ program is completely optional and introduces issuer-sponsored market making services to TSXV companies under the oversight and governance of the Exchange.
Market making offers several benefits to growing companies during their formative years. Having a committed market maker can promote market stability when there are gaps in natural liquidity, help to mitigate price volatility, and enhance the trading experience for investors. In fact, based on recent analysis conducted by TSXV, companies who engaged market maker services from a TSXV Member experienced a $0.02 decline in their average spread, an 18% increase in the number of days when a trade occurred, and a 6% decline in price volatility measured by the closing price against the 10 day moving average price.
Through the TSXV LiquidityPro program, TSXV companies can select from a pool of pre-qualified LiquidityPro Providers (LPPs), each of whom submits a bid across a standardized set of market making metrics along with their related monthly fee. This process helps companies select a market maker specific to their individual needs while also establishing clear expectations around the service level to be delivered. Once in place, LPPs are monitored under the high governance, reporting, and enforcement standards of the Exchange with full transparency provided to the company around its marking maker's performance.
The key features of LiquidityPro include:
- Centrally managed bidding process for pre-qualified and experienced TSXV Market Makers.
- Standardized agreements and terms managed by TSXV with a flexible framework to facilitate more customized market making needs.
- Monthly accountability and support. TSXV will issue monthly reports to listed companies showing the performance of their market maker in meeting their performance objectives.
- Billing administration based on performance provided by TSXV.
Companies who have already adopted market making services may also benefit from transferring their existing arrangements into the LiquidityPro program (subject to program requirements) to benefit from the enhanced reporting, oversight, and day-to-day administration provided by the Exchange.
For more information or to sign up, please contact your Listing Representative at firstname.lastname@example.org or 1 888-873-8392.
For information on becoming a LPP, please contact your TMX Account Manager at email@example.com or 1 877-421-2369.