Skip to main content
TD Securities

Frequently Asked Questions

Multiple Markets in Canada: What this Means to You


What is “best execution?


“Best execution” is our obligation to seek the most advantageous execution terms reasonably available under the circumstances when executing a transaction on behalf of a client, including consideration of factors such as price, speed of execution, certainty of execution and overall cost of the transaction. We aim to provide best execution both for orders individually and for all client orders in aggregate.


What markets are available to Canadian equity investors today?


The Canadian equity and listed derivatives market is composed of multiple marketplaces where an order may be routed, including exchanges such as the Toronto Stock Exchange (TSX), the TSX Venture Exchange (TSXV), TSX Alpha, Neo Exchange (Neo-N, Neo-L), the Canadian Securities Exchange (CSE), Nasdaq Canada (CXC, CX2), the Montreal Exchange (MX); visible Alternative Trading Systems including Omega ATS, Lynx ATS, and Liquidnet; and dark pools such as TriAct MATCH Now, Neo-D, and Nasdaq CXD.


What is an Alternative Trading System (ATS)?


ATSs provide automated trading systems which bring together orders from buyers and sellers of securities. Unlike exchanges, ATSs do not list securities and may only trade securities which are listed on other marketplaces.


Dark Pools are ATSs which do not display orders prior to execution.


How can I benefit from ATSs?


TD Direct Investing, TD Wealth Private Investment Advice and TD Securities work continuously to route your orders to the marketplaces which provide the best opportunity for execution. By participating in ATSs, clients are no longer limited to the TSX and the TSXV.


How do TD Direct Investing, TD Wealth Private Investment Advice and TD Securities route my Canadian orders?


TD Direct Investing and TD Wealth Private Investment Advice route all orders for Canadian listed securities and listed derivatives that are quoted or traded on Canadian marketplaces to TD Securities.


TD Securities employs a sophisticated routing system that dynamically assesses multiple marketplaces and distributes your order to the marketplace that, based on its analysis, is most likely to obtain the highest-quality execution available. In addition, TD Securities continually monitors its execution quality to make improvements. TD Securities employs multiple metrics, including price, speed, liquidity and opportunities for price improvement, to ensure that the order flow for TD Direct Investing, TD Wealth Private Investment Advice and TD Securities is directed to marketplaces that provide you with the best possible execution.


Under what circumstances will an order be moved to another marketplace?


In the event of technical or other issues that limit TD Securities access to a market such as failures, malfunctions, material delays with the marketplace and/or with order routers, orders received may be directed to an alternative marketplace as determined at the discretion of TD Securities.


Are there any differences between how orders route during regular market hours versus when the markets are closed?


Hours of operation for trading in publicly listed Canadian securities are between 9:30 am and 4:00 pm (Eastern Time) Monday through Friday, excluding Canadian statutory holidays.


During regular market hours, an active order will be directed to the marketplace with the best price at the time of execution, where best price is the highest bid for a sell order or the lowest offer for a buy order. When executing active orders, dark pools, and unprotected marketplaces may be evaluated for price improvement relative to the displayed quote, and all protected marketplaces are accessed to achieve best price.


During regular market hours, passive orders are generally booked to the primary listing marketplace for that security, but may be booked to a different exchange or an ATS based on an assessment of best execution factors for that order at the time the order is placed.


An order received prior to 9:30 am (Eastern Time) will be booked to the pre-opening of the primary listing marketplace for that security. An order received after 4:00 pm (Eastern Time) will be booked to the pre-opening of the primary listing marketplace for that security on the following business day.


Why can’t I see my order display on the TSX?


Currently, quotes presented in WebBroker only reflect orders booked to the primary marketplaces TSX, TSXV, CSE or Aequitas. Our quotes do not reflect orders booked to an ATS.


TDS does not provide market data to clients.


What is the risk of market orders?


A "market order" is an order to buy or sell a security at whatever price is available in the marketplace. Market orders provide no control over the execution price. In cases of extreme market volatility or liquidity imbalance, a market order may execute at a price which is significantly different than the expected execution price. Investors can use marketable limit orders in place of market orders to eliminate the risk of the order executing at a price outside of an investor's acceptable range.



> Click here to view a document outlining the changes made since January 2019 update



The information contained herein is current as of January 2020.


TD Direct Investing and TD Wealth Private Investment Advice are divisions of TD Waterhouse Canada Inc., a subsidiary of The Toronto-Dominion Bank. TD Waterhouse Canada Inc. – Member of the Canadian Investor Protection Fund.


TD Securities Inc., a subsidiary of The Toronto-Dominion Bank, is registered in the category of Investment Dealer in each of the provinces and territories of Canada and is a member of the Investment Industry Regulatory Organization of Canada. ® The TD logo and other trade-marks are the property of The Toronto-Dominion Bank.

    August 06, 2020
    Login to