TMX Group will introduce its first cross-asset class fee incentive program, effective Feb. 1, the company said Tuesday.

The TMX Group Exchange Traded Fund (ETF) Options Market Maker Rebate program will provide incentives for ETF options market makers to hedge Montreal Exchange trading activities through cash positions on Toronto Stock Exchange.

“This incentive program is designed to remove hedging friction for ETF options market makers and to attract further ETF trading activities and listing opportunities on Toronto Stock Exchange, TSX Venture Exchange and Montreal Exchange,” said Glenn Goucher, senior vp, financial markets, Montreal Exchange.

Under the rebate program, each ETF options contract traded by the designated market maker on Montreal Exchange will generate a per-share credit to offset ETF trading activities on TSX.

“The development of this new cross-asset class subsidization of ETF options market making activities further supports TMX Group’s efforts to encourage growth in the ETF sector, and to develop an integrated cash and derivatives trading business,” said Kevan Cowan, president, TSX Markets and TMX Group head of equities.

IE