Coming this fall: a new approach to trading at the close

The Toronto Stock Exchange (TSX) will switch on its new end-of-day trading model in the fall.

After receiving regulatory approval for its “market-on-close” (MOC) modernization proposal, the TSX said that the new model is expected to launch on Oct. 18.

Following industry consultation, the TSX proposed a series of reforms to its MOC facility that are designed to enhance transparency, improve execution and better align the Canadian markets with others around the world.

The new model is intended to attract more trading at close, improving liquidity and enhancing an increasingly-important exchange function — setting daily closing prices — which are used in market benchmarks, to price investment funds and derivatives, and for index rebalancing.

The announcement of the planned launch date follows the TSX Venture Exchange receiving approval from the British Columbia Securities Commission (BCSC) and the Alberta Securities Commission (ASC).

The changes had already been approved for the senior market by the Ontario Securities Commission (OSC) in late January.

The TSX said that it’s “confident that the significant efforts undertaken alongside our client community to reimagine our TSX MOC facility will reap wide-reaching and long-lasting benefits.”

The new MOC model will be available for testing in July.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.