Policy on Multiple Marketplace Trading
January 2007
Woodstone Capital Inc (“Woodstone”) has prepared this policy to address the re-emergence of multiple competitive marketplaces in Canada. We are distributing it to our clients to inform them of conditions and activities that could affect them.
1. The Principal Marketplace
Unless notified otherwise by Woodstone, the principal marketplace for all securities listed on the Toronto Stock Exchange (“TSX”), whether or not the security is trading on other alternate marketplace, will be the TSX. The TSX operates between 9:30am and 4:00 pm EST, Monday through Friday, not including statutory holidays in Ontario. Woodstone trading staff and systems will be available for order execution during principal marketplace hours. Woodstone will not guarantee order taking and /or trade execution outside of the hours of 9:30am to 4:00 pm EST.
2. Handing of Orders
All orders received will be handled as follows:
a) an order received prior to principal marketplace open (9:30am EST) will book to the pre-opening of the principal marketplace (TSX) for execution on the opening. Orders received prior to marketplace open will not route to an alternative marketplace; and
b) an order received after the principal marketplace close (4:00 pm EST) will be entered to the pre-opening of the principal marketplace (TSX) on the following business day. Orders received after marketplace close will not route to an alternative marketplace; and
c) an order received during the principal marketplace opening hours will be entered into the best market at the time of entry. The “best market” is the marketplace with the best bid (buy price) or ask (sell price) or where Woodstone feels the order has the highest probability of being executed. This may be any marketplace to which Woodstone has access and/ or which Woodstone can access for purpose of best execution; and
d) any portion of an order that cannot be immediately filled will be booked to the principal marketplace and will remain in the booked marketplace until the order is filled, expired, changed or cancelled; and
e) in the event of technical or other issues that limit Woodstone’s access to specified marketplace or routing automation, orders received will be directed to the principal or alternative marketplace as determined by circumstance in the marketplace.
3. Order Execution
Certain types of orders have specified handing implications in a multiple marketplace environment. Should you have questions with respect to Woodstone’s policy for execution of orders such as Good Til Cancelled, Limit Orders, Special Terms Orders, etc., please contact your Investment Advisor.
4. Disclosure of Marketplace
An order executed on one or more marketplace or alternative marketplace will be reported to the client using separate confirmations for each marketplace on which the order was filled. The marketplace on which the order was filled will be identified by name on the confirmation.
Please contact your Investment Advisor if you have any questions relating to this policy.
Woodstone Capital Inc. is a member of the Investment Industry Regulatory Organization of Canada (IIROC) as well as a member of the Canadian Investor Protection Fund (CIPF).
