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Dark Orders
On March 14, 2011 TSX Markets integrated the TSX/TSXV Dark Midpoint and Dark Limit order types with Canada's most extensive displayed order book providing tremendous value to all market participants by offering meaningful price improvement, significantly reducing trading costs and increasing valuable liquidity seeking options.
The Dark Midpoint and Dark Limit order types both provide full pre-trade anonymity and are eligible to match against all liquidity submitted to the Toronto Stock Exchange and TSX Venture Exchange. Providing our customers with continuous interaction between the dark and displayed books maximizes the value of additional execution opportunities and liquidity seeking options.
The Dark Midpoint order will only execute at the mid-point of the NBBO (National Best Bid/Offer) and may be submitted with an optional limit price. The Dark Limit order will only execute at or within the NBBO.
An optional Minimum Quantity instruction is available for Dark Midpoint orders which will prevent the order from participating in a trade unless the tradable volume meets or exceeds the volume specified through the Minimum Quantity instruction. The Minimum Quantity instruction will only be accepted if the volume provided in the Minimum Quantity tag meets or exceeds 20 standard board lots. To better assist institutions and users in reducing market impact and to enhance TMX Dark Order types as a valuable facility for the execution of larger sized orders, Dark Midpoint orders with a Minimum Quantity instruction will receive fill priority over other Dark Midpoint orders without this condition or Dark Limit orders at the same price level.
For a detailed description of our dark order types and their attributes please see the "Toronto Stock Exchange, TSX Venture Exchange Dark Liquidity Guide" available through the link below.
Benefits
Posting Dark:- FREE, no cost to post your order dark
- Continuous exposure to the primary displayed venue, the most 'streaming liquidity' in Canada, and therefore the best possible fill opportunities
- Facilitates the execution of large blocks which may be difficult to achieve on transparent markets due to lack of depth in the order book
- Protect client's proprietary trading information through complete pre-trade anonymity - no IOIs or selective access
- For those seeking dark liquidity, the integrated order book minimizes client's routing latency and opportunity costs by executing against dark and visible orders within one destination and with one transaction
- No need to 'ping' separate dark pools - by sending an order to TSX, we will automatically seek dark opportunities, while executing at the best visible price with trade through protection
- Provides liquidity takers with both meaningful price improvement and lower transaction costs (i.e. taker fee)
- Low latency dark trade executions through the Quantum technology with a single allocation sequence
- Efficient access - Dark orders are instantaneously available to customers through existing connectivity to TSX and TSXV, no "Opt IN" is required
- Low cost : Virtually no technology or integration costs - no additional routing destination
For more information regarding use of TSX/TSXV Dark orders, contact your TSX Markets Account Manager, or the Trading Services Helpline (Toronto area: (416) 947-4357 / Toll-free: (877) 370-0020).
