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.

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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.

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)
  • 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 Breakers document, 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.

Open

Pre-Open and Post-Open Priority and Allocation

The CSE matches orders by price/time priority at the opening and in post-open but will seek out the same firm crosses first (also known as firm priority or broker preferencing). For billing purposes, trades at the opening are designated active or passive according to time priority. Each side of an unintentional cross will be designated as active or passive according to time priority. Intentional crosses executed at the bid/ask are subject to interference from the book and that portion of a cross that is interfered with will be considered an unintentional cross for billing purposes. Orders are time stamped at the time of entry. First-in, First-out (FIFO) allocation distributes order volumes on the basis of each order’s time of entry into the trading system.

Opening

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 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).

Note: the CSE trading system does not support the following special trading sessions/facilities: STS crosses, LSTS (Last Sale Trading Session), MOC (Market on Close), MBF session (or MBF – Must Be Filled orders), or Option expiry.

For more information, see the Order Types and Functionality page. CSE operates under rules similar to the TSX.

See Also

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