7 Level 1 content includes equity quote and equity trade information. Level 2 content includes full depth of book equity order and trade information. 2.5 Minimum Assignments Market Maker firms are required to maintain a minimum number of security assignments as determined by TSX. The minimum number of assignments is currently set at 50. The minimum number may be adjusted or waived from time to time at the discretion of TSX in order to account for market factors. 2.6 Competitive Bidding Process TSX uses a competitive bidding process to apply clear and objective criteria for security assignments that promote fairness and transparency and are designed to reward the Market Makers that commit to achieving the most favourable performance outcomes. When a Market Maker security assignment becomes available, TSX publicizes the availability of the assignment through an email notification sent to the Market Maker contact designated by each Market Maker firm. The notice of availability includes details of the requirements for the service level bid. A Market Maker never holds both Market Maker assignments on any given security. 2.7 Bidding Process 2.7.1 New Listings and Stock Underperformance Reallocations Where a brand new listing, or an existing stock subject to an Underperformance Reallocation is available for bidding, the following bidding process determines both the awarded Market Makers and the Stock Level Performance Obligations which both Market Makers will be subject to: 1. Firms eligible to bid on assignments available as either new listings or as Stock Underperformance Reallocations (e.g., a firm that was not one of the Market Makers on a stock subject to a Stock Underperformance Reallocation and has not exceeded the threshold for underperformance) may submit their bids within the allotted time. TSX keeps all bids confidential until the assignment decision is made. 2. Bids for assignments must include a Market Maker’s commitments in respect of the following areas, subject to the published minimum and maximum levels defined in Appendix A - Performance Guidelines a. Spread Goal b. % Time at NBBO c. Top of Book Size 3. The TSX Allocation Committee reviews and approves assignments. Tier B securities are assigned first in order to establish the total number of Tier A securities each Market Maker is eligible to be assigned. All securities are assigned to bidding firms using the following criteria, subject to TSX discretion: a. The bid(s) with the highest Total Relative Score determine the stock level metrics and the Market Makers with the first and second best Total Relative score are awarded the assignment and both subject to the same stock level metrics. If the Market Maker with the second best relative score declines the assignment, the Market Maker with the 3rd highest Total Relative score is offered the assignment, and so on, until each assignment has two Market Makers. The Total Relative Score is calculated as follows:
RkJQdWJsaXNoZXIy MjgzMzQ=