TSX Market Making Program Guide Responsibilities of Market Makers TMX Group Page 29 3.7 Assistance to Issuers and Other Market Participants Market Makers through their responsibilities may develop experience trading a particular security and are encouraged to use this knowledge to help educate and inform issuers of general trading activity. TSX encourages issuers and Market Makers, at their discretion, to communicate on a mutually agreed upon schedule. Such communication may generally consist of trading activity, trends, publicly-disclosed liquidity events, general observations or commentary of the market. As a reminder, Market Makers are not entitled to, and must not solicit, any material information that has not been generally disclosed about their securities of responsibility and are responsible for complying with the Universal Market Integrity Rules, the TSX Rule Book, and applicable securities laws. Similarly, issuers must not disclose, offer, or suggest such information, and must understand that Market Makers are not responsible for guaranteeing a minimum or maximum price, and must not falsely generate trading volume. 3.8 Gatekeeper Role Gatekeeping is the term used for performing a surveillance role on each security and reporting suspicious or unusual behaviour to IIROC. Currently, Market Makers receive IIROC fee discounts for trades incurred on their securities of assignments in exchange for the gatekeeper function they perform. IIROC published Administrative Notice 16-0163 on July 7, 2016, which covers IIROC Fee Model Guidelines and, among other things, clarifies IIROC’s position on the application of the 70% fee discount to trades executed by Market Makers with marketplace trading obligations. The guidelines state that the number of trades executed by a “Qualified Market Maker” acting in furtherance of its marketplace trading obligations on the listing exchange shall be discounted by 70% for the purposes of calculating the Trade Fee for such Marketplace. For clarity, the discount will not be applied to trades for securities that are not listed on the listing exchange that entered into the trading obligations agreement with the Qualified Market Maker. As market making functions continue the trend toward electronification, it is important for Market Makers to have capabilities to continue providing this valuable service to IIROC. 3.9 Designated Market Maker Contact Market Makers are responsible for designating an individual within the firm to manage the Market Maker’s market making responsibilities and be the primary contact with TSX with respect to the Market Maker’s security assignments (the “Designated Market Maker Contact”). The Designated Market Maker Contact or his or her back-up must be available during trading hours. The responsibilities of the Designated Market Maker Contact include: 1) Managing security assignments
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