Regulators are seeking comment on proposed changes to the TSX’s direct access rules.

The board of directors of TSX Inc. has approved amendments to its rules, which broaden the prescribed classes of eligible clients in three main ways: they expand the existing class of investment counsellors and portfolio managers to include other Canadian registrants (for example, investment dealers) other than Participating Organizations (POs); they expand the existing class of foreign dealers who are affiliated with POs to include any foreign dealer whose home jurisdiction is a Basle Accord Country; and, they include a new class of clients that have total securities under management of at least $10 million and who are based in a Basle Accord Country.

Direct access allows a customer’s order flow to reach the exchange quickly and without intermediary interference. It also reduces the potential for information leakage, which also reduces both explicit and implicit trading costs and ultimately adds liquidity to the marketplace.

The amendments will be effective upon approval by the Ontario Securities Commission following public notice and comment.

Comments on the proposed amendments are due by February 13.