March 21, 2024
Equities Notice 2024-008
TMX Equity Trading Notice
Contingent Options Trade - RFC Notice
TMX Equities Trading is pleased to announce proposed enhancements to the Contingent Option Trade procedures for Toronto Stock Exchange ("TSX") in alignment with changes proposed by Montreal Exchange ("MX") as described here. A Contingent Option Trade is the trade of securities on TSX that are underlying an option traded on the MX. The proposed enhancements seek to provide TSX participants and MX members with the flexibility and confidence to effect both the equity and derivative components of a contingent option trade with ease.
The proposed enhancements will enable the automatic trade of the securities on TSX when the option portion of the contingent option is executed on MX. As a result of these changes, TSX is proposing to allow for the trade in securities on TSX to execute outside of the National Best Bid and Offer, but will restrict the trade to within the daily high and low price.
Under the amendments, Contingent Option Trades will continue to utilize the existing "MS" trade marker which does not set the daily high, low, last, open or close prices.
TSX has filed an application with the Ontario Securities Commission relating to the proposed enhancements, and a Request for Comment has been published here. Participants are encouraged to provide their views and feedback on the proposed amendments. The public comment period ends on April 22, 2024.
The proposed enhancements are expected to be implemented in Q2 2024, subject to regulatory approval.
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