Article 5:
Product Feature: Attribution and Anonymous Trading
The scenario is similar across issuers of all market cap sizes and not limited to either TSX or TSX Venture exchange. House One - Anonymous and the desire to understand both true house volumes and Anonymous trading patterns. The TMX offers two reports to issuers (depending on the exchange) to pierce the veil of the anonymous trading patters to enhance the understanding of your stocks trading patterns.
First a discussion of why TMX Group offers Attribution choices to traders.
Attribution Choices
Following the introduction of new cross-marketplace regulations in 2001 making order attribution elective in Canada, TSX Markets introduced for its Participating Organizations the option of having a unique firm identifier shown on an order (an "attributed" order) or alternatively, remaining unattributed, or "anonymous." Order attribution for TSX Venture Exchange was launched in late 2005.
This choice combines the best features of an attributed marketplace with those offered by anonymous trading systems.
How it works
On an order-by-order basis, and using access technology provided by one of the Toronto Stock Exchange's or TSX Venture Exchange's Order Access Partners, a Participating Organization or Member may elect attribution or anonymity. If attributed, the Participant's unique numeric ID will be provided via market information displays for all orders and trades. If anonymous, the non-specific numeric "001" will be associated with the order for the life of that order, including after execution, in all market information displays. At the end of the day where a trade is executed anonymously, Toronto Stock Exchange and TSX Venture Exchange will relay underlying Participant identity for that trade to the Central Depository for Securities (CDS), in order that the trade may be settled.
Investment Industry Regulatory Organization of Canada, the independent trading regulator, tracks the "true" identity on all orders and trades. Where required, the compliance and risk management departments of the relevant Participating Organizations and Members may review their firm's anonymous orders and trades during the trading day, and, again where required, may retrieve the identity of an anonymous counterparty at the end of the trading day.
Benefits
With the choice of attribution, Participating Organizations and Members, and their investing customers can:- Advertise an interest or activity in a security by choosing to attribute orders and trades, or
- Avoid market impact costs associated with holding a known position or interest in a security.
TMX Enhanced Broker Summary (TSX and TSX Venture)
The TMX Enhanced Broker Summary (EBS) provides issuers with a fully attributed recap of the past month's house trading summary sorted by broker. The EBS can be used in conjunction with the existing Broker Summary report available on TSXConnect® to reconcile anonymous trading activity, or can be used on its own for an accurate depiction of broker trading activity.
Using the EBS with TSXConnect® will allow issuers to more accurately target firms that are buying and selling their security resulting in a more effective and efficient Investor Relations program.
TMX Anonymous Broker Summary (TSX)
The TMX Anonymous Broker Summary (ABS) provides issuers with an account of the total anonymous trades conducted by each broker firm in the past month. This report is different from the Enhanced Broker Summary because it will only display a summary of anonymous trades and not any other trading activity by brokerage firms.
The ABS and the EBS data is in Excel format and is delivered by email to the issuer (one subscriber email address only) on the 6th business day of every month.
Contact your Relationship Manager for pricing details.
http://www.tmx.com/en/listings/products_services/ir_data_solution/enhanced_broker_summary.html
