🔥 Daily ChallengeISEExecution and market integrityMedium
An institutional trader at an Investment Dealer is responsible for providing a continuous two-sided market in a specific TSX-listed security. While fulfilling these Marketplace Trading Obligations, the trader enters a sell order that will result in a short sale. How should this order be marked?
10 attempts · 50% correct
The order must be marked as a standard Short Sale (SS).
The order does not require any short-related marker due to the market maker's exemption.
The order only requires an SME marker if the market maker's strategy is fully automated.
The order should be marked as Short-Marking Exempt (SME).Correct
Why
Orders made in furtherance of Marketplace Trading Obligations (MTO) qualify for the Short-Marking Exempt (SME) designation.
