With the introduction of four new specialty cross types from TSX Markets, market participants now enjoy more ways to take advantage of market opportunities. These improvements are designed to decrease costs associated with advanced trading techniques. Each specialty cross type provides distinct market advantages and these crosses are not subject to interference. In addition, because specialty cross types are flagged publicly, they offer the marketplace better transparency for large specialized transactions.
A trade whereby a basket of securities or an index participation unit is transacted at prices achieved through the execution of related exchange-traded derivative instruments which may include index futures, index options and index participation units in an amount that will correspond to an equivalent market exposure.
A transaction for the purpose of executing a trade at a volume-weighted average price of a security traded for a continuous period on or during a trading day on Toronto Stock Exchange.
A trade resulting from a paired order placed by a Participant on behalf of a client to execute an order on a security that is contingent on the execution of a second order placed by the same client for an offsetting volume of a related security.
A closing price cross resulting from an order placed by a Participant on behalf of a client for execution in the Special Trading Session at the last sale price.
Although the specialty cross types may be executed anonymously, brokers must report each cross using the appropriate marker (i.e. basis cross marker, VWAP cross marker, etc). This alerts the Toronto Stock Exchange system that the cross can fall outside of normal market parameters. Each trade appears on all real-time TSX trade data. (In addition TMX Datalinx offers reports detailing the Specialty Price Crosses executed on a daily or monthly basis.)
All specialty cross trades are short sale rule exempt (i.e. these crosses can be entered short even if the trade will result in a downtick).
To take advantage of these services, and for further details, please contact a TSX Markets Account Manager.