TSX Market Making Program Guide Entering the Program TMX Group Page 7 TSX allocates securities to firms in a manner that maintains, to a reasonable degree possible, a minimum ratio of Tier B securities for each Tier A. ETF securities are excluded from this calculation. The applicable ratio is adjusted periodically based on the ratio of the total number of Tier A securities to Tier B securities traded on the TSX. This ratio is important to ensure coverage for all TSX-listed securities while also maintaining a fair allocation of securities across Market Makers. 2.4 Concentration Limits Additionally, in order to maintain fair allocation of securities across Market Makers and to mitigate against any over-reliance on any one Market Maker, no Market Maker may have greater than a specified percentage of security assignments within any given tier classification (A1, A2, A3 and B) unless special circumstances apply for which TSX retains ultimate discretion. The current maximum concentration per tier is 35% and is measured across all assignments of each firm. 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:
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