Order Types and Functionality Guide

44 6.2.3 Bid/Ask Limits Bid/Ask Tick Limits are a TMX Market Quality safeguard available across TSX, TSXV and TSX Alpha that prevents Market or Better Price limit orders from trading deep into the book, thus causing large anomalous price swings. Bid/Ask Tick Limits are configurable across the market based on the security’s quoted price, and apply automatically to market and better price limit orders. This mechanism limits the number of ticks past the best bid price or best ask price an order can trade through. If an incoming tradable order hits the bid/ask limit and still has volume remaining, the remaining volume is booked at the bid/ask limit. START PRICE 0.00 1.00 5.00 50.00 100.00 Equities 0.10 0.25 0.50 1.00 5.00 Debentures 5.00 5.00 5.00 5.00 5.00 6.2.4 Single Stock Circuit Breakers Single-stock circuit breakers are an important tool to help mitigate short-term volatility in the trading of individual stocks. Recent regulatory changes introduced single stock circuit breakers. This means that a five-minute halt of trading in a security will now automatically trigger across all Canadian marketplaces if the price of the security swings 10% or more within a five-minute period. Initially, SSCBs will apply to all securities included in the S&P/TSX Composite Index, as well as to those exchange- traded funds (ETFs) which are comprised principally of listed securities. All trades executed at more than 5% beyond the price that triggered the SSCB will be cancelled. 6.3 Order Markers All markets support markers required for regulatory purposes including: • Insider Account (IA) • Significant Shareholder (SS) 6.3.1 NCIB Marker Participating Organizations, when acting as a broker making purchases on behalf of a listed issuer pursuant to a normal course issuer bid, must comply with certain exchange requirements that are imposed on listed issuers. The NCIB marker is used to identify such orders. For more information on NCIB compliance, see the TSX Rule Book Part 6 – Division 5.