June 6, 2024
Equities Notice 2024-014
TMX Equity Trading Notice
Proposed Amendments to Interaction between Self-Trade Management and Self-Trade Prevention - Request for Comment
TMX Equities Trading is pleased to announce proposed amendments to how Self-Trade Management orders interact with Self-Trade Prevention orders for each of Toronto Stock Exchange ("TSX"), TSX Alpha Exchange ("Alpha"), and TSX Venture Exchange ("TSXV").
Self-Trade Prevention ("STP") is an optional order feature that prevents two orders from the same broker from executing against each other based on unique trading keys defined by the broker. Self-Trade Management ("STM") is an optional trading feature that suppresses trades from the public feed where orders on both sides of the trade are from the same broker and contain the same "self-trade key" defined by the broker.
Currently, if an order with STM matches against an order with STP, the trade will be executed and will appear on the public tape. This trade will update the last sale price, and any trading statistics (such as daily volume and share turnover) until such time as the dealer may instruct the exchange to cancel.
Pursuant to the amendments, rather than publishing to the public tape a trade that is executed between a STM and STP (even where both orders have matching self-trade keys), such a trade be suppressed from the public tape when the keys from STM and STP orders are matching (consistent with the STM to STM functionality). As such unintentional trade is from the same participant organization and trader representing both sides of the trade, the trade will not contribute towards the last sale price or any trading statistic such as daily volume and share turnover.
Each of the exchanges has filed an application with the applicable securities commission relating to the proposed amendments, and a Notice of Proposed Amendments and Request for Comments for each of TSX and Alpha, and TSXV has been published here. Participants are encouraged to provide their views and feedback on the proposed amendments. The public comment period ends on July 8, 2024.
The proposed amendments are expected to be implemented in Q3 2024, subject to regulatory approval.
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