TSX Market Making Program Guide

TSX Market Making Program Guide Entering the Program TMX Group Page 6 (iii) Other assignment methods: a. Related Instrument Assignments - Certain securities may be classified by the TSX as related instrument assignments which may be directly allocated in accordance with a root security. Related instruments include rights, warrants, subscription receipts, preferred shares, US dollar equivalents or multiple classes of common shares (i.e., classes of with different voting rights, Canadian vs. US resident eligibility), when issued, or essentially any derived product based upon an existing issuer. Debentures and notes are not assigned to Market Makers. b. Non-Voluntary Assignments - In cases where no eligible competitive bids are submitted on a security, TSX assigns such security to the next Marker Makers based on a round robin allocation method (whereby assignments are made to all eligible Marker Makers in sequence, with the intention that non-voluntary assignments be equally allocated among firms). Market Makers must act in accordance with applicable requirements for all assigned securities of responsibility. c. Temporary Assignments - Market Makers may be required to assume temporary responsibility for newly listed securities and other security assignments that become available, until such time that those specific securities are permanently assigned to a Market Maker(s). 2.3 Tier System and the Tier A:B Ratio TSX categorizes listed securities according to tiers based on the level of trading activity in the securities. Securities that fall into the Tier A category are the most actively traded securities based on the security’s average daily value (“ADV”) traded on TSX in the previous 12 month period, calculated quarterly. The Tier B category covers securities that, on average, trade less actively. The tiers are further divided into sub-tiers, which are also based on levels of trading activity. Table 1 - Tier Classification of Securities Tier Sub-tier Description A 1 ADV = or > $50 million A 2 ADV of $10 to < 50 million A 3 ADV of $1 to < 10 million B 1 ADV < $1 million. The security list is further divided into deciles according to ADV, with B1 category having the highest ADV and B10 having the lowest ADV B 2 B 3 B 4 B 5 B 6 B 7 B 8 B 9 B 10