The Toronto Stock Exchange says that it’s in the process of implementing market making reforms that will see stocks reassigned from individual traders to their firms.

The reforms were outlined in a paper released back on August 19, 2002, by which all stocks of responsibility (SORs) will be reallocated solely to TSX firms and not to individual registered traders in conjunction with their firms.

Each trader will be given prior notice of the date on which their SOR assignment(s) will be allocated solely to the firm which employs the trader. The period of notice will be based on length of service as a trader, adjusted by the proportion of trading conducted in the trader’s SOR assignments during the 12 months preceding January 1.

Prior to the effective date of reallocation of a trader’s SORs, SOR assignments will continue to transfer with a trader to a new employer, provided that the trader and the new employer continue to meet applicable performance standards.

TSX would prefer to reallocate SORs from a registered trader to the firm employing the trader at the date of reallocation, provided that the firm continues to accept such assignment and meets the applicable criteria.

However, TSX reserves the right to reassign SORs at its sole discretion in the interests of promoting an effective marketplace and minimizing excessive concentration of assignments in any firm. As is currently the case, firms receiving SOR assignments will be required to enter into a market making agreement with TSX.

www.tsx.ca