On April 12, 2002, TSX Markets introduced additional flexibility and convenience for Toronto Stock Exchange Participating Organizations and investors seeking to transact disproportionately-large orders: "Iceberg" order support. Iceberg orders were launched on TSX Venture Exchange in late 2005.
This feature allows Participating Organizations and Members and investors to "book" their entire order - gaining convenience and assured participation - while only displaying a portion of the size in market information and trading terminal displays.
Using compliant access technology provided by one of the Toronto Stock Exchange's and TSX Venture Exchange's Order Access Partners, a Participating Organization or Member may enter a large order of several thousand shares, but describe a "disclosed" portion, which may be as few as 100 shares. Those disclosed shares will be displayed to traders and the public, but all shares, up to the entire balance, are eligible to trade at any time - albeit after any and all disclosed volume at the same price.
If the Iceberg order is filled in portions, its disclosed portion, which fills first because of its disclosure, may eventually be decremented to zero. At this point, the displayed portion of the Iceberg order will automatically refresh to the original disclosed amount, repeating as necessary until the entire balance is traded. When an Iceberg order refreshes, it receives a new time-stamp, allowing other same-price orders an opportunity to move up in the time queue.
Using Iceberg orders provides several key benefits to large order holders:
Moreover, Iceberg orders - committed to the Toronto Stock Exchange or TSX Venture Exchange book in pursuit of the above benefits - increase book liquidity and decrease price volatility.
For more information regarding use of Iceberg orders, contact your TSX Markets Account Manager, or the Trading Services Helpline (Toronto area: (416) 947-4357 / Toll-free: (877) 370-0020).