Canadian Securities Exchange (CSE)

The Canadian Securities Exchange provides an alternative to traditional exchanges as it has lower costs and capitalization requirements than the other primary markets in Canada.


Currency: Canadian Dollar (CAD)

Hours of Operation & Holiday Hours

Trading Summary

CSE uses the same underlying technology for its primary market as it does for its alternative trading venue PURE.

Order Types

Note: not all order types are available for every gateway.

  • Limit Buy/Sell→ShortSell (Day/IOC)
  • Limit Buy/Sell→ShortSell Reserve (Day)
  • Market Buy/Sell→ShortSell (Day/IOC)
  • Market-on-Close (MOC) Buy/Sell→ShortSell (Day)
  • Pegged Midpoint Buy/Sell→ShortSell (Day)

Alternative Trading Systems (ATS)

Basic Market Rules

  • Lot Size: varies by price, as follows:
Price Range Board Lot
< $0.10 1000
$0.10 to $1 500
> $1 100
  • Tick Size: varies by price, as follows:
Price Range Board Lot
< $0.495 $0.005
>= $0.50 $0.01
  • Short Sale Rules: short sell orders must be properly marked. There is no locate requirement intraday.
  • Circuit Breakers: a market-wide trading halt will occur when the circuit breakers, defined in the IIROC Circuit Breakersdocument, are triggered. Tied primarily to movements of the Dow Jones Industrial Average. On days when US markets are closed, the S&P/TSX Composite will be used as reference.

Auction Mechanisms

The auction mechanism used by CSE is similar to that on the TSX and TSX-V markets in Canada. For more information, see the Order Types and Functionality page.

This section provides a basic overview of trading on the systems operated by the Canadian Securities Exchange (CSE). It is not intended to be a comprehensive description of all the functionality of the trading systems.

The CSE has retained the Investment Industry Regulatory Organization of Canada (IIROC) as its regulation services provider, or market regulator. The Universal Market Integrity Rules (UMIR) apply to all activity on the CSE. All markers, identifiers, and order types required by UMIR are available.



Orders entered during the pre-open market state are queued in the regular term book and an opening price is calculated (the Calculated Opening Price or COP). Each symbol has only one opening price per move from pre-open to open market state. The COP is based only on the regular term book. Terms and odd lot orders match and trade only after the opening state change. The following criteria are used to calculate the opening price in consecutive order:

  • Maximize share traded volume
  • Minimize imbalance in share volume
  • Better price for the market side with higher demand
  • Minimize net change from the previous day's closing price
  • Maximize share price

The pre-opening phase is from 08:00:00 - 09:30:00. During this phase, orders can be entered and cancelled but will not be matched. Matching takes place at the open (09:30:00).


The closing price is defined by the following closing auction mechanism. Auction means an auction conducted in a trading platform to match the Central Limit Order book with any orders in the closing order book.

  • a) Market-On-Close (MOC) Market orders shall trade with offsetting MOC Market Orders entered by the same Participating Organization (PO), according to time priority, provided that neither order is an unattributed or jitney order; then
  • b) MOC Market Orders shall trade with the offsetting MOC Market Orders, according to time priority; then
  • c) MOC Market Orders shall trade with offsetting limit orders (LOC or disclosed volume of continuous orders) entered by the same PO, according to price/time priority, provided that neither order is an unattributed or jitney order; then
  • d) MOC Market Orders shall trade with offsetting limit orders (LOC on continuous) according to price/time priority; then
  • e) Limit orders shall trade with the disclosed volume of offsetting limit orders entered by the same PO, according to price/time priority, provided that neither order is an unattributed or jitney order; then
  • f) Limit orders shall trade with the offsetting limit orders according to price/time priority

Auction Periods

1. Pre-Imbalance (07:00 - 15:40)

  • Continuous trading occurs, where bids and offers may be entered, amended, or cancelled
  • Market-On-Close (MOC) orders may be entered, amended, and cancelled
  • No imbalance orders will be matched

2. Post-Imbalance (15:40 - 16:00)

  • Limit-On-Close (LOC) orders may be entered, amended, or cancelled under condition to:
    • LOC order must be on the opposite side of the imbalance
    • LOC order must not exceed the size of the published imbalance
    • LOC order must be within 3%-TSX and 5%-TSX-V of last sale price
  • LOC bids and offers retain their ranking in Price/Time Priority
  • Regular limit bid and offers still open and not executed at 16:00 may compete equally with LOC orders. These limit bids/offers are classified as ‘CLOB’ orders. The non-displayed portions of CLOB orders (icebergs) are allocated last relative to other CLOB or LOC orders at the same price. Dark orders do not participate.
  • No ‘On-Close’ bids or Offers will be matched

3. Calculated Closing Price (CCP) (16:00)

  • Closing auction is conducted
  • No bids or offers may be entered, amended, or cancelled
  • Auction imbalance orders are matched and the CCP is calculated
  • If CCP violates a price parameter of 3%-TSX and 5%-TSX-V against the last sale, a price movement extension occurs which allows for further imbalance orders to be entered

3b. Price Movement extension (PME) (16:00 - 16:10)

  • Only limit orders opposing the remaining imbalance may be entered to participate the PME Close

3c. Price Movement extension close (16:10)

  • A second closing auction is conducted to offset the remaining imbalance
  • Bids or offers are matched against the MOC book
  • No bids or offers may be entered, but may be cancelled

Order Types: traders may enter Market-On-Close orders prior to the 15:40 publishing of the imbalance, after which only Limit-On-Close and regular limit orders opposing the imbalance will be accepted to participate in the closing auction.

For more information on the auction mechanisms on the Canadian Securities Exchange, see the Order Types and Functionalitypage. CSE operates under rules similar to the TSX.

See Also

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