TSX Group Inc. is enhancing its equity fee structure to further incent market making firms that supply liquidity to Toronto Stock Exchange.
Market makers ensure efficient and orderly trading, reduced volatility, and support for the retail investor. The impact on TSX Group Inc. overall trading revenue is expected to be neutral.
Market maker fees for their symbols of responsibility in the post-open continuous market for active trades will be $0.0032 on high priced equities and $0.0003 on low priced equities.
For passive trades, there will be $0.0032 rebate on high priced equities, and a $0.0003 rebate on low price equities.
High priced equities are those greater than or equal to $1; low priced equities are less than a $1.
Fees for Market On Close (MOC) and extended session remain unchanged.
TSX now incents firms capable of providing significant passive liquidity by eliminating all restrictions on passive liquidity credits and applying 100% of these credits against the firm’s total monthly trading fees
TSX is also announcing the introduction of free printing for intentional crosses. Free printing of crosses should ensure the trading community continues to have access to information in a centralized fashion from the principal marketplace.
“Market makers play a vital role in the operation of an accessible and fair market, and we are happy to provide enhanced incentives that encourage these activities. Developments like market maker fee reductions and free printing of intentional crosses, and the introduction of the new trading engine TSX Quantum, allow us to improve the market for all of our customers,” stated Thomas Kalafatis, vp, sales and product Development for TSX Markets says
He reiterated that the new fee schedule has incentives that support both retail and institutional trading.