14 2.5 Odd Lot trading TSX/TSXV Orders with volume less than a standard trading unit are considered an odd lot and do not trade in the regular CLOB. The majority of listed securities are assigned an RT on TSX and an odd lot dealer on TSXV. The RT/odd lot dealer automatically guarantees a complete fill at the Protected NBBO for incoming odd lot orders priced at or better than the opposite Protected NBBO. If the odd lot order’s price is not marketable the odd lot order is displayed in the odd lot book and will trade at the Protected NBBO with the RT/odd lot dealer once its price becomes better than or equal to the opposite side Protected NBBO. If an opposite side odd lot order is entered with the exact same volume and priced at or better than a resting odd lot order’s price, then the odd lots can trade against each other. For stocks with no RT/odd lot dealer, odd lots can only trade against each other in the manner described above. In all cases, odd lot matching only occurs within the context of the protected NBBO. Odd lots only trade as “All or None” which means partial fills are not accepted. It is possible for the odd lot book to display orders with overlapping prices when resting odd lot orders can match on price but not on volume. TSX Alpha Orders with volume less than a standard trading unit are considered an odd lot and do not trade in the regular CLOB. The majority of TSX Alpha traded securities are assigned an odd lot dealer. The odd lot dealer automatically guarantees a complete fill at the better of the Protected NBBO and the Alpha best bid or offer for incoming Odd Lot orders priced at or better than the opposite side’s price. If the odd lot order’s price is not marketable the odd lot order is displayed in the odd lot book and will trade at its limit price with the odd lot dealer once its price becomes better than or equal to the opposite side of the better of the Protected NBBO and the Alpha best bid or offer. If an opposite side odd lot order is entered with the exact same volume and priced at or better than a resting odd lot order’s price, then the odd lots can trade against each other. For symbols with no odd lot dealer, odd lots can only trade against each other in the manner described above. In all cases, odd lot matching only occurs within the context of the Protected NBBO plus the Alpha BBO. Odd lots only trade as “All or None” which means partial fills are not accepted. It is possible for the odd lot book to display orders with overlapping prices when resting odd lot orders can match on price but not on volume. 2.6 Market on Close (MOC) The Market on Close (MOC) facility is an electronic call market that establishes the closing price for eligible listed stocks on Toronto Stock Exchange and TSX Venture Exchange. The MOC facility is a value added service for Toronto Stock Exchange (TSX) / TSX Venture Exchange (TSXV) providing equal access and opportunity in setting the closing price, increased price discovery efficiency, and reducing the volatility of the closing price for symbols eligible for the MOC facility. The facility provides a fair benchmark for the fund management industry and provides a mechanism to minimize tracking error caused by deviations from the closing price. Derivative traders also benefit from the MOC facility as they require reliable benchmark closing prices for index related securities for basis, swaps, and options trades. The MOC facility was introduced to TSX in 2004 and has since been widely adopted as an efficient and effective mechanism to establish the closing price. The facility was further extended to TSXV in 2012 to aid in portfolio and index rebalancing activities for recent Venture indices and index tracking ETFs. As of Oct 18, 2021, the facility has been modernized to improve transparency, better align with global markets and improve consistency of execution. For details on the new MOC model, please refer to the TSX MOC Detailed Guide. Initially the MOC facility was introduced on TSX for the constituents of the S&P/TSX Composite Index. With the increase in the number of indices and the increase in the number of ETFs, there has been steady growth in the symbols added to the MOC facility. Currently TSX and TSX Venture support a MOC session, available for specified securities. TSX Alpha does not support a MOC session.
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