TSX’s new-look closing session gets OSC blessing

Regulators have given the green light to a planned overhaul of TSX Inc.’s end-of-day trading session.

Proposals published last year to revamp the exchange’s market on close facility have now been approved by the Ontario Securities Commission.

The proposals are intended to improve liquidity and transparency at the market close and enhance the efficiency of determining the market’s closing prices.

To achieve these improvements, the proposals will increase the content and frequency of imbalance messages, align the imbalance period with global standards and introduce a freeze period “to mitigate volatility, dampen price impact, and prevent late stage imbalance reversals.”

To implement the changes, the TSX will be amending its rule book and certain marketplace functionality.

The TSX said that it expects to implement the changes in October, “subject to stakeholder feedback and industry readiness and feedback.”

“We are excited to implement the approved changes and look forward to providing an improved trading experience for our clients,” the TSX said in a notice.

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.