Market participants will soon find it easier to manage their obligations to fill better-priced visible orders at Toronto Stock Exchange and TSX Venture Exchange when executing a designated trade at a prearranged price on TSX/TSXV with two new order types.

A Bypass Order is an Immediate or Cancel order to fill against visible volume only to meet regulatory obligations.

A Designated Cross is a cross allowed to print as a Designated Trade at a prearranged price without interference from better priced orders or same priced orders. Traders will meet their regulatory obligations by printing the Designated Cross at TSX after executing their Bypass Orders.

With the launch of these new order types and proposed TSX smart order router initiative, TSX/TSXV will be well positioned to meet the full sweep of regulatory change resulting from the evolution of the multi-marketplace trading environment.

“As the marketplace evolves, we continue to find innovative solutions to support its clients and the investing public” says Thomas Kalafatis, vice president, sales and product development, TSX Markets. He adds “Providing the platform for best execution remains the focus of the equities trading group at TMX. We are pleased to proceed with the Bypass Order and Designated Cross as part of our aggressive product roll-out schedule, with more announcements coming soon.”

In Market Integrity Notice No. 2008-08, dated May 16, 2008, Market Regulation Services Inc. (now Investment Industry Regulatory Organization of Canada) introduced provisions respecting off marketplace trades, including the bypass marker, as amendments to UMIR. The marker enables a marketplace to systematically enforce the bypass of the undisclosed volume of an iceberg order and bypass trading with special terms orders and other specialty orders permitted by the UMIR rules. The combination of the Bypass Order and the Designated Cross will allow dealers to fill against visible orders only and then execute a trade and/or an intentional cross that qualifies as a Designated Trade under UMIR. Traders will also be able to contact TSX Trading Services to manually print a prearranged trade so long as the better priced orders have been filled using the bypass marker.