TSX Seeks To Strengthen Market Making System

Last week, the Toronto Stock Exchange announced that it had approved amendments to its rules to assist TSX market makers in light of the emergence of multiple marketplaces and an increasingly electronic trading environment.

Specifically, the proposed amendments, which still require the approval of regulators, would eliminate the rules relating to market maker capital requirements, stabilization and anti-scooping, and allow market makers to execute booked oddlots at their limit price. New requirements would also be introduced on the use of the Minimum Guaranteed Fill and oddlot facilities.

Ultimately, the proposed amendments are intended to support market making as a "viable business model" and continue to enhance liquidity on market makers' securities of responsibility. Comments on the amendments are being accepted until October 17, 2011.