A new order type is being proposed to address concerns with market quality caused by high frequency trading. The objective of the proposed Long Life order is to improve execution quality for certain retail and institutional investors and their dealers "by rewarding those willing to commit liquidity to the book for a minimum period of time". In short, a Long Life order will be executable when it is booked to the TSX Central Limit Order Book but it cannot be amended or cancelled for a fixed minimum resting time of one second. The TSX contends that this fixed minimum resting time would not disrupt trading by those who do not use latency sensitive trading strategies and methods and by those who commit liquidity to the TSX Central Limit Order Book. Long Life orders would benefit from receiving priority over other orders at the same price that are not Long Life orders.
Comments are due by June 22, 2015. For further details, please consult the TSX Notice of Proposed Amendments and Request for Comment regarding Long Life orders, which would amend Part 1, Rule 4-604, Rule 4-801, Rule 4-802 and Rule 4-901 of the TSX Rule Book.
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