TMX Group Inc. is pleased to announce its first cross-asset class fee incentive program, which is effective February 1, 2009. The TMX Group Exchange Traded Fund (ETF) Options Market Maker Rebate program will provide incentives for ETF options Market Makers to hedge Montréal Exchange trading activities through cash positions on Toronto Stock Exchange.
“This incentive program is designed to remove hedging friction for ETF options Market Makers and to attract further ETF trading activities and listing opportunities on Toronto Stock Exchange, TSX Venture Exchange and Montréal Exchange,” said Glenn Goucher, Senior Vice President, Financial Markets, Montréal Exchange.
Under the rebate program, each ETF options contract traded by the designated Market Maker on Montréal Exchange will generate a per-share credit to offset ETF trading activities on Toronto Stock Exchange.
“The development of this new cross-asset class subsidization of ETF options market making activities further supports TMX Group’s efforts to encourage growth in the ETF sector, and to develop an integrated cash and derivatives trading business,” said Kevan Cowan, President TSX Markets and TMX Group Head of Equities.
