What benefits do Registered Traders provide the TSX market?
Enhanced liquidity On some markets, quotation of a thinly traded security can be “no bid – no ask”. On Toronto Stock Exchange, Registered Traders are responsible for ensuring a reasonable quoted market for all listed securities. In the absence of a counterparty, the Registered Trader will post a bid (or ask) quotation that will trade against their own account, if an order at the market is entered. Prices posted by the Registered Trader must relate to the last trade price and the bid-ask spread must be fair. Better prices Tighter spreads mean better prices for investors. Your Registered Trader is obliged to keep the bid-ask spread on your stock within a defined range (“spread goal”). When the market lacks reasonably-priced orders, the Registered Trader enters a buy or sell order for his/her own account at a price that narrows the price spread. Less volatility Smaller price changes between trades mean lower volatility. Registered Traders help offset temporary imbalances between supply an
