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TORONTO STOCK EXCHANGE

NOTICE OF HOUSEKEEPING RULE AMENDMENTS

HOUSEKEEPING AMENDMENTS TO THE RULES OF TORONTO STOCK EXCHANGE

 

Introduction

In accordance with the Process for the Review and Approval of Rules and the Information Contained in Form 21-101F1 (the "Protocol"), TSX Inc. ("TSX") has adopted, and the Ontario Securities Commission has approved, amendments (the "Amendments") to the TSX Rule Book. The Amendments are Housekeeping Rules under the Protocol and therefore have not been published for comment. The Ontario Securities Commission has not disagreed with the categorization of the Amendments as Housekeeping Rules.

Reasons for the Amendments

The Amendments are being made to fix typographical errors, formatting errors and /or clarifying existing practice.

Summary of the Amendments

The following sections of the TSX Rule Book will be amended:

Section of the TSX Rulebook

Amendment

Rationale

1.

Rule 4-305(4)3 -- Price Guarantees

Amend language to correct typographical error.

Correct typographical error.

2.

Policy 4-405(1)(d)(ii) -- Approved Traders

Amend language to correct typographical error.

Correct typographical error.

3.

Rule 4-604 -- Assessment of Market Maker Performance

Amend language to clarify that TSX may impose such other penalties (other than requiring a Market Maker to pay a monetary penalty) that it may determine appropriate, from time to time.

Amend language to reflect that TSX is not limited in the penalties it may impose on Market Makers that fail to comply with their obligations.

4.

Rule 5-108 -- When Security Delisted, Suspended or No Fair Market

Amend language to correct typographical error.

Correct typographical error.

5.

Rule 5-301 -- Buy-Ins

Correct formatting error.

Correct formatting error.

Text of the Amendments

The Amendments are set out as blacklined text at Appendix A.

Timing

The Amendments become effective April 18, 2019.

APPENDIX A

AMENDMENTS TO TORONTO STOCK EXCHANGE RULE BOOK

Rule 4-305 Sales from Control Block Through the Facilities of the Exchange

[...]

(4) Restrictions on Control Block Sales on the Exchange

[...]

3. Price Guarantees -- The price at which the sales are to be made can notcannot be established or guaranteed prior to the seventh day after the filing of Form 45-102F1 with the Exchange.

[...]

Amended (April 6, 2017April 18, 2019)

Policy 4-405 Approved Traders

For the purposes of Rule 4-405(3), an individual shall not be approved by the Exchange as an Approved Trader unless such individual:

[...]

(d) has:

(i) successfully completed the Canadian Securities Course and has not less than one year's experience with a Participating Organization, or

(ii) has not less than two years' experience with a Participating Organization; and

Rule 4-604 Assessment of Market Maker Performance

[...]

(2) Penalties for Non-Compliance

Following a determination that a Market Maker has failed to satisfactorily perform its market making obligations, the Exchange may determine that:

(a) determine that a Market Maker's approval be suspended or revoked;

(b) determine that a Market Maker's responsibility for one or more securities be removed; and

(c) determine that an investigation into a Market Maker's trading or activities be carried out; or

(d) impose such other penalty (other than requiring a Market Maker to pay a monetary penalty) as the Exchange may determine appropriate, from time to time.

Amended (November 27, 2017April 18, 2019)

Rule 5-108 When Security Delisted, Suspended or No Fair Market

[...]

(2) If the Exchange is of the opinion that a fair market in the security is not likely to exist the Exchange may provide that the Exchange Contracts be settled by payment of a fair settlement price and if the parties to the Exchange Contract can notcannot agree on the amount, the Exchange shall fix the fair settlement price after providing each party with an opportunity to be heard.

Amended (February 24, 2012April 18, 2019)

Rule 5-301 Buy-Ins

(1) Failed trade

In the event that a Participating Organization fails to:

(a) carry out an Exchange Contract within the time provided in the Exchange Requirements; or

(b) settle a loan of securities as provided in Rule 5-301(2); or

(c) deliver securities as provided in Rule 5-301(3),

such Participating Organization is in default of the Exchange Contract and the trade may be closed out, at the discretion of the Exchange, through the buy-in procedure set out in this Division.

[...]

Amended (September 5, 2017April 18, 2019)