The role of the Market Maker on Toronto Stock Exchange (TSX) is to augment liquidity, while maintaining the primacy of an order-driven continuous auction market based on price-time priority. TSX's Market Maker system maximizes market efficiency and removes the interfering influence of a traditional specialist. In the TSX environment, a Market Maker manages market liquidity through a passive role. Market Makers are visible only when necessary to provide a positive influence when natural market forces cannot provide sufficient liquidity.
Click here to access a list of TSX Market Making Firms.
Market Makers do not have any proprietary pre-trade information or access to information regarding trade order entry of other participants.
TSX continuously monitors the performance of all Market Makers at Toronto Stock Exchange with respect to their ability to contribute to the overall market in terms of creating liquidity, depth and continuity.
Securities allocations are considered firm privileges and responsibilities. These allocations are awarded when securities are newly issued and when there are changes in responsibility. TSX's Allocation Committee determines which firms are awarded securities to manage as Market Makers based on among others:
Generally Market Maker firms are required to: