TSX Market Making Program Guide

TSX Market Making Program Guide Entering the Program TMX Group Page 9 Example: Scoring for a Tier A Security b. If there is a tie between 2 bids, then the assignments are awarded to the 2 firms involved in the tie. c. If there is a tie among more than 2 bids, the 2 firms with the lowest percentage of underperforming securities in the previous 12 months (the “lead bidders”) that are better than all other firms involved in the tie by 10% or more are awarded the assignment. For greater certainty, if the lead bidders are not better than any other firm by 10% or more, all firms within such 10% threshold are considered to be in a tie with the lead bidders, and in such instance Subsection 2.7.1(3)d below applies. Net new Market Makers having less than one year of history in the Program by default fall in the 50th percentile of underperformance. TSX may adjust the 10% threshold with advance notice. d. If there is still a tie among multiple bids, TSX applies its discretion to award the security assignment. Other factors taken in consideration may include, but are not limited to:  a Market Maker’s market making experience;  the issuer’s recommendation;  the strategic focus of the Market Maker;  the desirability of maintaining a long-run balance, depth and breadth of Market Makers; and  other factors which are likely to contribute to a Market Maker’s ability to compete with other liquidity providers, such as the Market Maker’s technological capability, market presence, global reach, and lines of business. 4) Winning assignments are announced publicly. Spread Goal Top of Book Size % Time at NBBO 10% 40% 50% A 0.05 13,000 90% 10.00 10.00 8.33 9.17 Winner B 0.05 5,000 90% 10.00 0.00 8.33 5.17 C 0.06 8,000 92% 5.00 3.75 10.00 7.00 D 0.07 7,000 80% 0.00 2.50 0.00 1.00 Relative Score & Weights Total Relative Score Broker Spread Goal Top of Book Size % Time at NBBO Biddable Metrics