Bid Out with Peter Haynes

In Episode 71, Peter is joined by two market on close experts from Vanguard, portfolio managers Nick Birkett and John Kraynak. Nick has been trading the US close for the past eight years from his perch in the Scottsdale office. Prior to moving to the US, Nick was with the portfolio trading team at JP Morgan in London for 14 years. John is based out of Malvern and has been with Vanguard for 15 years. He manages portfolios for the international team and is active in trading closing order flow for Vanguard in Canada and Brazil and is involved in working with Mexican officials on the potential creation of a MOC auction modeled off the new relatively new, and very well received, TSX MOC facility. Nick and John go through the nuances of each model and order type important to closing auctions and debate the pros and cons of various features of each MOC facility. The two PMs finish up with tips for traders navigating on close risk in the Americas, a process that requires local knowledge that takes into consideration unique trading conventions in each market.  This podcast was recorded on May 5, 2025. Chapter Headings: 01:11 - Does Concentration of Flow on Close Lead to Higher Intra Day Trading Costs?07:24 - Model Preferences – Europe Style or American Style Closing Auction16:30 - MOC Deep Dives – Canada, Mexico (work in progress), Brazil33:56 - NYSE Allows Early Floor Look, Late Imbalance Flip Flops – Does That Cause Fairness Issues?41:08 - Understanding Accessible MOC Volume – Case Study – Canada45:22 - Broker Sponsored Closing Facilities – Good or Bad48:25 - Advice for Traders Navigating the Close For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In Episode 70, we invite back two Bid Out podcast veterans, Jim Toes, President of the Security Traders Association, and Jaret Seiberg, TD Cowen's Washington Research Group Financial Services Policy Expert, for a discussion on the next SEC Administration, likely to be led by Paul Atkins. Jim and Jaret start with an explanation for the low key, zero drama nature of the Atkins confirmation hearing for SEC Chair, citing the limited pushback expected on the nomination, and the fact that the confirmation process has been streamlined post the GFC. That said, Minority Ranking Member Elizabeth Warren published a 34-page letter of issues and questions for the Chair-Designate covering a wide range of current and historic SEC issues, including many about the time Atkins spent as an SEC Commissioner prior to the GFC. Jim and Jaret discuss several of the topics raised by Senator Warren, including potential conflicts for the Chair, gamification of markets, the future of FINRA and the CAT, and crypto oversight.  The pod finishes with Jim's look into his crystal ball to answer the question "will Atkins reverse NMS during his tenure?"This podcast was recorded on April 2, 2025.Chapter Times:00:55 - The Zero Drama Atkins Hearing and Next Steps08:30 - Senator Warren's 34 Page History Lesson13:22 - The Future State of Completely Partisan Commissioners23:34 - Will Atkins Reverse Policy Decisions from Gensler Administration?31:10 - How Can Atkins Manage Conflicts Including with Trump?35:31 - 0DTE, Gamification, 24 Hour Trading and Crypto – Protecting Retail Investors For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In Episode 69, two Canadian market structure experts, Doug Clark, Head of Equity Product Design for TMX Group, and Rob Gouley, Equity Trading Principle, OMERS, join the podcast to dig in on all things Canadian equity market structure. The conversation starts with a quick elevator pitch on what are the key differentiating features about trading in Canadian shares versus other market models, including the troublesome growth in F Class trading of Canadian shares in the US OTC market. Rob provides his perspective on venue innovation in Canada, and also gives a positive take on the TSX's revised market on close mechanism, which now looks and feels a lot like Nasdaq's US MOC mechanism. Doug provides a 411 on both Alpha X in Canada, and the recent launch of AlphaX US, and Rob outlines the better late than never CSA response to the SEC's market structure rule changes. The two speakers end up in a thought exercise on what Canada's market would look like if Canada banned OPR and Fair Access. This podcast was recorded on January 24, 2025. Chapter Times: 05:45 - The Elevator Pitch on Trading in Canada10:00 - Canadian Trading Volume on F Class Shares in US13:50 - The Pros and Cons of Transparent Broker IDs17:30 - New Marketplace Innovations in Canada28:58 - TMX Dips its Toes into US Ocean35:50 - Canada's Reboot on Market on Close39:52 - Canadian New Issue Market in Atrophy43:55 - Canada's Response to SEC on Ticks and Access Fees50:43 - A Case for Canada to Ban OPR and Fair Access For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In Episode 68, we are joined by Allison Bishop, President of Proof Trading, for a discussion on market data in the US, a topic that is a front burner item with market structure followers.  Allison provides her firm's experience as a start-up small broker required to purchase market data and the choice between subscribing to the faster but more expensive prop feeds from exchanges or using publicly available data feeds known as SIPs.  Her firm chose the SIPs which put her front and center as a stakeholder in the on-going debate over content and governance of the public data feeds, a contest that began in 2018, included multiple lawsuits and remains in limbo and awaiting direction from the SEC.   This podcast is a great resource for any market participant wanting to understand the history of the debate over market data and what might happen next with the incoming Atkins Administration at the SEC. Chapter Headings:04:50 - The Choice between the SIP and Prop Feeds07:15 - Guiding Principles of Market Data Reform13:36 - The Final Rules on SIP Content and Governance15:29 - Making Sense of the Initial Cost Proposal for the Enhanced SIP25:40 - Why Data Should be a Utility like Water or Electricity?29:09 - Will Smaller Exchanges Fight Incumbents to Lower Data Fees? For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

As has become tradition, each year at our annual portfolio management and market structure conference we include a panel with index providers from the Big 3, FTSE-Russell, MSCI and S&P Dow Jones.  In our recent event held November 7th, we added a portfolio manager from Vanguard's International Team, Michael Perre, to the discussion to provide a user's perspective on some of the hot button items for index benchmark providers.  Topics covered in this discussion include recent consultations on domicile and capping, South Korea's status as a split country and the possibility it moves either to Emerging for FTSE or Developed for MSCI and accountability for index provider errors that leave a footprint in the market.  The panelists also discuss whether indexing is a crowded trade.  Other participants include Catherine Yoshimoto from FTSE, Jean-Maurice Ladure from MSCI and Louis Bellucci from S&P. Chapter Headings 1:00 - Who Do Indexers Sell to if the Bubble Bursts?12:54 - S&P's Domicile Consultation29:00 Accountability for Index Provider Errors36:53 - South Korea's Split Status44:47 - Is Indexing a Crowded Trade Yet?48:15 - Capping Benchmarks and RIC Rules For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In Episode 66, we welcome two of Canada's leading pension experts for a discussion on issues impacting Canada's world renowned Maple 8 funds.  Malcolm Hamilton and Bob Baldwin are two Canadians who are lifelong followers of pension funds and share with our listeners the key reasons why Canada's Maple 8 funds are world leaders.  Bob explains the case for Alberta to leave CPP, a topic he has written about extensively, which puts the Chief Actuary of Canada on the hotseat to determine fair value on Alberta's share of the fund.  Other topics include the debate over ownership of Canadian assets, managing the increase in life expectancy and a crystal ball look at pension issues 10 years from now. This podcast was recorded on August 13, 2024. Chapter Headings – 2:02 - Why Canada's Pension Funds are the Envy of the World?11:06 - Explaining Alberta's Case for Leaving CPP23:24 - Canada's Chief Actuary Assia Billig26:44 - The Case for Owning More Canadian Assets38:28 - Solving for Expanding Life Expectancy47:04 - Bob's Crystal Ball – Maple 8 Pension Issues 10 Years from Now For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

If you are looking to learn about a recent market structure developments in the US, then take the next hour and listen to one of the US market's leading experts, Brett Redfearn.  We touch on all of the important issues of the past few years including market data reform, the new Texas Stock Exchange, and current hot buttons regarding access fees, tick increments, and best ex and order competition.  Brett's resume is second to none in the US market structure space, with experience as an exchange executive, a market structure analyst for JP Morgan, heading up Trading and Markets at the SEC, working for a crypto exchange, and now as a consultant to participants in all areas of capital markets. He pulls no punches in this episode, including his take on winners and losers post exchange demutualization. This podcast was recorded on July 19, 2024. Guest: Brett Redfearn, Founder & CEO, Panorama Financial Markets Advisory Chapter Times: 05:58 - The Texas Stock Exchange10:02 - The Never Ending CAT Debate14:39 - Impact of Supreme Court Ruling on Chevron19:18 - Brett's Mission on Market Data27:56 - The Concept of Platform Theory37:23 - Tick Increments and Access Fees45:00 - Impact of Decimalization on NBBO50:20 - Best Ex and Order Competition56:09 - Is the Market Better Off With Demutualized Exchanges? For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In part two of our exploration into equity market structure issues for APAC, our expert guests John Fildes from Bain and Company and George Molina from Templeton Global Investors return to tie up loose ends on equity trading in the region.  In this episode, the speakers cover all things Korea, first with news of a competitive exchange offering coming in 2025 and next with a discussion on the ever-increasing trading interest from retail in the country. Finally, we ask George to discuss the impact of a short selling ban in Korea on liquidity, and then we move to a discussion on T plus 1 in the region, Made in Brazil trading Do's and Don'ts and an update on the forgotten market in the region, Australia.  We finish with George rubbing his crystal ball to tell us what to expect in trading APAC 5-10 years down the road. This podcast was recorded on July 2, 2024. Chapter Headings:00:56 - Competition Comes to Korea09:57 - FSC Extends Short Selling Ban in Korea12:00 - T + 1 in the Region15:52 - Made in Brazil Trading Do's and Don'ts23:20 - APAC's Forgotten Market – Australia29:41 - George's Crystal Ball For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In Episode 63, we continue our journey around the globe analyzing market structure developments with a podcast dedicated to the APAC region.  Joining us are two experts in global trading, John Fildes from Bain and Company and George Molina, Head of Global Trading for Templeton Global Investors.  In this first of a two part series on APAC, John and George compare trading in APAC to other regions in the world, update listeners on the climate for investing in China and address badly needed changes to closing auction models in Japan (pending) and India (needed). This podcast was recorded on July 2, 2024. Chapter Headings1:03 – General Differences Between North American, Europe and APAC Trading3:11 – Will Exchange Competition Grow in the Region?10:26 – The Climate for Investing in China17:12 – Modernizing Japan's Market Including the Launch of a MOC Facility26:25 – India's Close Price Uses 30 Minute VWAP – When Will That Change?35:05 – Are APAC Investors and Traders Properly Engaged in Market Structure Developments?Guests: John Fildes, Capital Markets Practice Lead and Expert Partner, Bain & CompanyGeorge Molina, Senior Vice President, Head of Asia, EM & LAM Trading, Franklin Templeton Investments For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

On Friday, June 28, in a landmark ruling, the Supreme Court of the United States struck down the Chevron Deference, a 40 year old precedent ruling that was utilized by Courts in determining the powers of agencies of the US Government. The Supreme Court eliminated Chevron as part of its ruling in a case (Loper Bright Enterprises vs Rainmondo) involving the ability of an Agency, the Department of Commerce, to force herring fishermen in Maine to pay for government monitors. The ruling sent a shiver through Washington as it was seen as an attack on the Administrative State by a right-leaning anti-agency Supreme Court. In Episode 62 of Bid Out, J.W. Verrett, our go-to Administrative Law Expert from George Mason University, returns to the podcast alongside our own TD Cowen Washington Research Group Financial Services Policy Analyst Jaret Seiberg to discuss the implications of this decision on SEC rulemaking, including its equity market structure reforms expected to go final in the next couple months.This podcast was recorded on July 2, 2024.Chapter Headings:1:14 – Down Goes Chevron5:08 – What Rules are at Risk?8:25 – Implications for Policymaking12:14 – Why Equity Market Structure Rules Might be Protected?18:35 – When Does Congressional Review Act Kick In?26:24 – Does Gensler Leave with a Change in Administration?Guests:J.W. Verret JD, CPA/CFF, CFE, CVA, Associate Professor, Antonin Scalia Law School, George Mason UniversityJaret Seiberg, Managing Director, Washington Research Group, TD Cowen  For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In Episode 61, we finish the second of a two-part series on European Market Structure with our expert witnesses from the region, James Baugh, Head of European Market Structure for TD Cowen, and Dermot Dunphy, Head of Trading for M&G Investment Management.  In part two, we drill down on the impact of RobinHood's arrival to the European trading landscape, the shift to the close of volumes, the renewed push for a shorter trading day and the timeline for T1 in Europe and the UK.  We finish up with an update on the high-profile and controversial topic of a Consolidated Tape in Europe and the potential for a single-securities regulator in Europe that could be a first step towards a centralized listings platform for the EU countries.This podcast was originally recorded on March 18, 2024Chapter Headings:0:55 - The Impact of RobinHood's Arrival on Retail Trading8:33 - Shift to the Close – Are MOC flows Accessible?11:25 - Renewed Push to Shorten European/UK Trading Day23:28 - T + 1 Implications and Timeline for European/UK Move27:25 - Consolidated Tape and Market Data Costs32:02 - Case for a Single European Regulator and Potentially One European Listings PlatformGuests:James Baugh, Managing Director, Head of European Market Structure, TD CowenDermot Dunphy, Deputy Head of Equities Dealing Desk, M&G InvestmentsDisclaimer:This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this recording was obtained from publicly available sources, has not been independently verified by TD Securities, may not be current, and TD Securities has no obligation to provide any updates or changes. All price references and market forecasts are as of the date of recording. The views and opinions expressed in this podcast are not necessarily those of TD Securities and may differ from the views and opinions of other departments or divisions of TD Securities and its affiliates. TD Securities is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this podcast. The information contained in this podcast does not constitute investment advice or an offer to buy or sell securities or any other product and should not be relied upon to evaluate any potential transaction. Neither TD Securities nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

Episode 60 is the first of a two part deep dive on European Market Structure, a topic we have not covered in several years on the podcast.  As we learn in the two episodes, a lot has changed since we last covered the space.  Helping us get up to speed are two experts in the region, James Baugh, TD Cowen's Head of European Market Structure, and Dermot Dunphy, Head of Trading for M&G Investment Management.  In this episode, we cover the anatomy of an execution for a block sized order and how it changed over Dermot's career, the existential threat faced by the LSE and UK to maintain its place amongst the leading global capital markets, and an introduction to some of the Made in Europe market conventions.Chapter Headings:7:23 - Anatomy of an Block Order – What has Changed - 2001 vs 2024?14:44 - LSE Defending its Turf23:03 - MTFs, Systematic Internalizers and Other Made in Europe Conventions This podcast was recorded on March 18, 2024 Guests:James Baugh, Managing Director, Head of European Market Structure, TD CowenDermot Dunphy, Deputy Head of Equities Dealing Desk, M&G InvestmentsDisclaimer:This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this recording was obtained from publicly available sources, has not been independently verified by TD Securities, may not be current, and TD Securities has no obligation to provide any updates or changes. All price references and market forecasts are as of the date of recording. The views and opinions expressed in this podcast are not necessarily those of TD Securities and may differ from the views and opinions of other departments or divisions of TD Securities and its affiliates. TD Securities is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this podcast. The information contained in this podcast does not constitute investment advice or an offer to buy or sell securities or any other product and should not be relied upon to evaluate any potential transaction. Neither TD Securities nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In Episode 59, we are joined by J.W. Verret, professor at the Antonin Scalia School of Law at George Mason University, to discuss a key tenet of rulemaking for US Government Agencies known as the Chevron Deference (or Doctrine). The Chevron Deference is a  40-year-old Supreme Court doctrine that empowers agencies such as the SEC to enact rules in areas of jurisdiction that may not be clearly defined in the law.  The doctrine states that Courts "defer" to agencies in areas of ambiguity, the thinking being that agencies have staff that are subject matter experts.  However, the limits of this power are often tested in court when agencies propose rules that plaintiffs suggest exceed rulemaking authority. Recently a case that could impact Chevron – Loper Bright Enterprises vs Raimondo - made it to the Supreme Court. Loper vs Raimondo is a case that challenges a ruling by the National Marine Fisheries Service (a subsidiary agency of the US Department of Commerce) over who should pay for federal observers placed on Herring fishing boats in Maine.  The outcome of this ruling could alter or eliminate Chevron and lead to a material erosion in the rulemaking powers of US government agencies including the lengthy agenda of proposed rules at Chair Gensler's SEC.  Interestingly, as we learn in this episode, the one area of SEC rulemaking that might be immune to a weakened or eliminated Chevron Deference is equity market structure.  Tune in to learn why and get Professor Verret's take on this important case and its implications for Gensler's SEC rulemaking agenda.Chapter Headings:1:25 - What is the Chevron Deference?4:38 - Loper Bright Enterprises vs Raimondo9:10 - Implications for the Gensler Rulemaking Agenda11:30 - How Agencies Write Rules Without Chevron15:00 - Why Equity Market Structure Rules Might be Exempt?Guests:J.W. Verret JD, CPA/CFF, CFE, CVA, Associate Professor, Antonin Scalia Law School, George Mason UniversityDisclaimer:This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this recording was obtained from publicly available sources, has not been independently verified by TD Securities, may not be current, and TD Securities has no obligation to provide any updates or changes. All price references and market forecasts are as of the date of recording. The views and opinions expressed in this podcast are not necessarily those of TD Securities and may differ from the views and opinions of other departments or divisions of TD Securities and its affiliates. TD Securities is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this podcast. The information contained in this podcast does not constitute investment advice or an offer to buy or sell securities or any other product and should not be relied upon to evaluate any potential transaction. Neither TD Securities nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In part two of our series on equity algorithms, we cover algo wheels, the sizzle around Artificial Intelligence in algos, and the process for adding new venues to routing tables.  We finish up with a couple war stories from past battles with old school traders that resisted change as well as a look into the future state of algos. Chapter Headings:0:50 - The New Shiny Object Everyone Has to Have - Algo Wheels16:40 - Adding New Venues and Order Types to Algo Routing21:40 - AI in Algos – is it all Sizzle and no Steak?28:10 - The Future State of AlgosGuests:Jennifer Hadiaris, Global Head of Equity Market Structure, TD CowenRobert Miller, Head of Global Equity Execution Consulting, The Vanguard Group Inc. Disclaimer: This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this recording was obtained from publicly available sources, has not been independently verified by TD Securities, may not be current, and TD Securities has no obligation to provide any updates or changes. All price references and market forecasts are as of the date of recording. The views and opinions expressed in this podcast are not necessarily those of TD Securities and may differ from the views and opinions of other departments or divisions of TD Securities and its affiliates. TD Securities is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this podcast. The information contained in this podcast does not constitute investment advice or an offer to buy or sell securities or any other product and should not be relied upon to evaluate any potential transaction. Neither TD Securities nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed.  For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In the first of a two-part series on equity algorithms, Episode 57 of Bid Out focuses on why VWAP, a much maligned trading benchmark representing "average" execution performance, still remains popular with buy side traders.  Robert discusses proper benchmarking for VWAP strategies as well as the process for determining proper participation rates, while Jenny breaks down the importance of distilling traded volume down to the portion that represents tradeable activity to ensure that algo strategies are properly calibrated.  We finish part one focused on the growing importance of on close activity, the period the trading day with the most natural liquidity, and the need to incorporate on close strategies into scheduled based algo logic.Part 2 will be release next Friday on February 2, 2024. Chapter Headings:7:53 - Why does VWAP Remain so Popular?13:44 - Comparing Broker VWAP Algos17:08 - The Importance of Accurately Predicting Volume23:45 - Incorporating On Close Strategies Into Scheduled Based AlgosGuests:Jennifer Hadiaris, Global Head of Equity Market Structure, TD CowenRobert Miller, Head of Global Equity Execution Consulting, The Vanguard Group Inc.Disclaimer:This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this recording was obtained from publicly available sources, has not been independently verified by TD Securities, may not be current, and TD Securities has no obligation to provide any updates or changes. All price references and market forecasts are as of the date of recording. The views and opinions expressed in this podcast are not necessarily those of TD Securities and may differ from the views and opinions of other departments or divisions of TD Securities and its affiliates. TD Securities is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this podcast. The information contained in this podcast does not constitute investment advice or an offer to buy or sell securities or any other product and should not be relied upon to evaluate any potential transaction. Neither TD Securities nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In Episode 56, we dig into current index events with representatives of three of the world's most important benchmark providers S&P, MSCI and FTSE who spoke together on a panel at our recent 24th Annual Portfolio Management and Market Structure Conference. Over the past couple months, executives at Blackstone, Palantir and UBER have all highlighted S&P 500 index inclusion as part of keynote discussions about the company, as if index status is part of regular earnings or company updates.  It seems like the role of the index provider, especially in the US with S&P, is becoming even more important by the day, so it is great we had a chance to ask one of the Index Committee members at S&P for thoughts on whether the 500 Index is simply becoming too important. During this 45-minute panel discussion, we cover the concerning trend of domicile changes to the US and overall concentration of the US market in global benchmarks, the debate over multi voting shares and the status of China A shares in Emerging benchmarks.   Finally, we address the likelihood that South Korea moves to Developed in MSCI, an outcome that seems less likely after the country imposed new short selling restrictions. Chapter Headings:3:15 - Is there a new domicile rule for Canada?13:16 - Is the world becoming too US-centric?18:55 - Is the S&P 500 too important?28:27 – Multi Voting Shares33:50 – China – When Will A Share Weighting Change?39:03 – Extreme Price Moves Ahead of Benchmark Changes Episode Guests:Louis Bellucci, Head of Committee Management, Index Governance, S&P Dow Jones IndicesRicardo Manrique, Head of Strategy, Benchmark & Index Solutions, FTSE RussellRaman Subramanian, Global Head of Solutions Research, MSCI Disclaimer:This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this recording was obtained from publicly available sources, has not been independently verified by TD Securities, may not be current, and TD Securities has no obligation to provide any updates or changes. All price references and market forecasts are as of the date of recording. The views and opinions expressed in this podcast are not necessarily those of TD Securities and may differ from the views and opinions of other departments or divisions of TD Securities and its affiliates. TD Securities is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this podcast. The information contained in this podcast does not constitute investment advice or an offer to buy or sell securities or any other product and should not be relied upon to evaluate any potential transaction. Neither TD Securities nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

Episode Double Nickels (55) of Bid Out dives into the deep end of US options market structure with two experts, Dave Kovtun from Jane Street and Paul Jiganti of IMC Markets.  The goal of this podcast was to educate equity traders and portfolio managers about the information content of options activity and related impact on the underlying securities.  Listeners will learn about recent market moving options activity in the S&P and some less liquid US stocks, and what it means to have single stocks expire during the week, in addition to once a month on the third Friday.  Paul and Dave tamp down any chatter that 0DTE trading might lead to a so-called Volmageddon 2 event, as potential land mines from option market maker rebalancing are well known to the Street.  Dave does an excellent job explaining how market makers hedge options risk and how the lack of homogeneity in hedging strategies leads to more liquidity in the market.  Paul and Dave finish with some suggestions for improvements to options market structure, a space that has not garnered a huge amount of regulatory attention in recent years.Chapter Headings: 8:42 - Some Recent Market Moving Options Activity12:32 - 0DTE – Tamping Down Talk of Volmageddon 222:00 - Single Stock Options – New Expiries During the Week27:14 - How do Market Makers Hedge?40:45 - Options Market Structure – What Needs to Change? Disclaimer: This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this recording was obtained from publicly available sources, has not been independently verified by TD Securities, may not be current, and TD Securities has no obligation to provide any updates or changes. All price references and market forecasts are as of the date of recording. The views and opinions expressed in this podcast are not necessarily those of TD Securities and may differ from the views and opinions of other departments or divisions of TD Securities and its affiliates. TD Securities is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this podcast. The information contained in this podcast does not constitute investment advice or an offer to buy or sell securities or any other product and should not be relied upon to evaluate any potential transaction. Neither TD Securities nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In Episode 54, we tackle the complex and not well socialized topic of fault lines within the equity market infrastructure.  When system problems occur, market participants scream for a day and then go back to business when normalcy returns.  This begs the question: is there enough post mortem analysis of system issues at the overall industry level and why does this post mortem activity remain primarily behind the scenes in Canada?  Our guests for this episode are two experts in market infrastructure - Etienne Phaneuf, CEO of ArchES Computing and Stephen Plut, Managing Director and Co-Founder of ITS Online – and by the end of this episode, we hope all our listeners are better educated on system complexity and some of the risks to future market stability and resiliency. Chapter Headings: 6:20 - Do We Need More Attention to System Outages in Canada?10:42 – The Teck B Router SNAFU15:06 - Hardware vs Software Solutions – Introducing FPGA Cards27:55 – Impact of Narrower Tick Sizes – Canada and US Not Alike 35:40 - Not All Messages are Created Equal40:20 – Is Canada Different than Other Geographies?41:42 – Cyber Risk to System Up Time Disclaimer: This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this recording was obtained from publicly available sources, has not been independently verified by TD Securities, may not be current, and TD Securities has no obligation to provide any updates or changes. All price references and market forecasts are as of the date of recording. The views and opinions expressed in this podcast are not necessarily those of TD Securities and may differ from the views and opinions of other departments or divisions of TD Securities and its affiliates. TD Securities is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this podcast. The information contained in this podcast does not constitute investment advice or an offer to buy or sell securities or any other product and should not be relied upon to evaluate any potential transaction. Neither TD Securities nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed.  For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

Show Notes: In Episode 53, we cross the mote to the other side of the balance sheet and discuss liability management by pension funds, popularized by the term Liability Driven Investing (LDI).  We are joined by Bill Chinery, an actuary and former asset management executive with pension fund expertise as well as Frederic Kibrite, an asset-liability specialist from TD Asset Management.  Bill and Fred discuss the evolution of LDI from the early days of pension fund management in the mid 20th century all the way to the celebrated blow up of the strategy in the UK in 2022 that ultimately cost Prime Minister Liz Truss her job.  Bill discusses Canada's celebrated pension system which, despite its strengths, cannot fight inevitable demographic challenges caused by lower fertility rates and an aging populations.  Fred finishes up with advice to governments in dealing with pension fund demographics – act early!Chapter Headings: 2:20 - Early Days of LDI6:24 - LDI Makes Headlines in the UK12:30 - Tony Blair's Solution for UK Corporate Pensions24:05 - Capacity Limitations – What Happened to RRBs?30:00 - Celebrating Canadian Pension Plans37:27 - Demographic Challenges39:51 - Macron's Political Gamble to Raise Retirement AgeDisclaimer: This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this recording was obtained from publicly available sources, has not been independently verified by TD Securities, may not be current, and TD Securities has no obligation to provide any updates or changes. All price references and market forecasts are as of the date of recording. The views and opinions expressed in this podcast are not necessarily those of TD Securities and may differ from the views and opinions of other departments or divisions of TD Securities and its affiliates. TD Securities is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this podcast. The information contained in this podcast does not constitute investment advice or an offer to buy or sell securities or any other product and should not be relied upon to evaluate any potential transaction. Neither TD Securities nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

Episode 52 is a detailed discussion unpacking two new ATSs in the US that offer solutions in the US market to help manage the complexity of liquidity discovery. In order to unpack this discussion, we call upon the CEOs of PureStream and OneChronos, industry veterans Armando Diaz and Vlad Khandros.  In this episode we learn about the key tolls built into the new ATSs to help solve institutional trading problems, not the least of which is the search for size in a marketplace with liquidity fragmented across 16 exchanges and over 40 ATSs.  Be sure to stick around to the end of this episode to hear Armando and Vlad's takes on the SEC proposed equity market structure reforms.Chapter Headings: 5:43 - PureStream Mission Statement11:37 - Is Information Leakage a Concern?21:37 - OneChronos – Is Complexity an Impediment to Adoption?32:28 - What is Expressive Bidding?35:15 – Should Brokers be Concerned About Exchange Disintermediation?42:38 - Quick Take on Gensler's Equity Market Structure Proposals Host: Peter Haynes, Managing Director and Head of Index and Market Structure Research, TD SecuritiesPeter joined TD Securities in June 1995 and currently leads our Index and Market Structure research team. He also manages some key institutional relationships across the trading floor and hosts two podcast series: one on market structure and one on geopolitics. He started his career at the Toronto Stock Exchange in its index and derivatives marketing department before moving to Credit Lyonnais in Montreal. Peter is a member of S&P's U.S., Canadian and Global Index Advisory Panels, and spent four years on the Ontario Securities Commission's Market Structure Advisory Committee. For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

Episode 51 is an excerpt from our recent Portfolio Management and Market Structure Conference held in late 2022.  In this panel discussion, index benchmark experts from S&P, MSCI and FTSE discuss the important issues impacting global benchmarks including capacity limitations of ESG oriented indices.  Other important topics discussed in this 45 minute panel include multi voting share eligibility, whether China should be proactively moved to Stand Alone status, differences on South Korea classification and rule proposals to insulate the S&P 500 from the next Tesla.Chapter Headings: Should Multi Voting Shares Be index Eligible? (6:40)Avoiding the Next Tesla (14:00)It is all about China (18:00)Why are FTSE and MSCI at odds on South Korea's Developed Status? (31:35)Chasing ESG Benchmarks with Limited Capacity (37:50)Disclaimer: This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this recording was obtained from publicly available sources, has not been independently verified by TD Securities, may not be current, and TD Securities has no obligation to provide any updates or changes. All price references and market forecasts are as of the date of recording. The views and opinions expressed in this podcast are not necessarily those of TD Securities and may differ from the views and opinions of other departments or divisions of TD Securities and its affiliates. TD Securities is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this podcast. The information contained in this podcast does not constitute investment advice or an offer to buy or sell securities or any other product and should not be relied upon to evaluate any potential transaction. Neither TD Securities nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In Episode 50, we bring together an all-star cast of market structure experts to dig into the SEC's proposed equity market structure reforms that total some 1656 pages of reading.  Our guests first try to explain what the SEC is hoping to accomplish with its proposed rules, and what changes, if any, Canada will need to mimic.  We then tackle several of the important proposals in detail including tick reform, access fees, new round lot definitions and the relevance of the NBBO, order transparency, retail auctions and best execution.  We finish with musings over bargaining chips the SEC can dangle to get some of the most important reforms across the finish line, because it is not clear if all of these rules will survive industry scrutiny and potential litigation.  Chapter Headings: 5:40 – What is the SEC Trying to Accomplish?10:30 – What Rules, if Any, Does Canada Need to Mimic?17:40 – Buy Side Concerns with Tick Reform25:05 – Impact of Lower Access Fees on Liquidity33:45 – Data – Will the Industry be Overwhelmed?43:20 – Order by Order Competition – Retail Auctions49:20 – Information Leakage During Auctions58:10 – Regulation Bes Ex – Read Through for Institutions1:06:40 – Gensler – Potential Bargaining ChipsHost: Peter Haynes, Managing Director and Head of Index and Market Structure Research, TD SecuritiesPeter joined TD Securities in June 1995 and currently leads our Index and Market Structure research team. He also manages some key institutional relationships across the trading floor and hosts two podcast series: one on market structure and one on geopolitics. He started his career at the Toronto Stock Exchange in its index and derivatives marketing department before moving to Credit Lyonnais in Montreal. Peter is a member of S&P's U.S., Canadian and Global Index Advisory Panels, and spent four years on the Ontario Securities Commission's Market Structure Advisory Committee.Guest 1:Mehmet Kinak, Global Head of Equity Trading, T. Rowe Price Guest 2: Jim Toes, President, Security Traders AssociationGuest 3: Doug Clark, Head of Equity Product Design, TMX GroupSeries Link:https://www.tdsecurities.com/ca/en/bid-outThis podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this recording was obtained from publicly available sources, has not been independently verified by TD Securities, may not be current, and TD Securities has no obligation to provide any updates or changes. All price references and market forecasts are as of the date of recording. The views and opinions expressed in this podcast are not necessarily those of TD Securities and may differ from the views and opinions of other departments or divisions of TD Securities and its affiliates. TD Securities is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this podcast. The information contained in this podcast does not constitute investment advice or an offer to buy or sell securities or any other product and should not be relied upon to evaluate any potential transaction. Neither TD Securities nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

Episode 49 of Bid Out explores the future of digital asset technology in a post FTX world.  Our guests, Mark Garabedian from Wellington Capital Management and Jeremy Lai from TD Securities, take us on a journey of discovery on what went wrong with FTX including differentiating decentralized from centralized finance as well as opining on the comments of FTX's former CEO Sam Bankman-Fried during his recent personal apology tour.  Along the way, Jeremy and Mark explain the institutional use cases of distributed ledger technology in capital markets and how far along the infrastructure providers are in solving for table stakes issues such as KYC, AML and cyber risk.  Mark finishes with a review of his peer group on the buy side, indicating that Wellington is not alone in its support for digital ledger technology and its potential to change the infrastructure of global capital markets.Chapter Headings: 1:39 -  Wellington Commits to Digital Assets6:19 – Defi vs Cefi18:15 – Institutional Use Case for Distributed Ledger Technology28:00 – Explaining Some of the Key Terms in Digital Assets35:55 – Where are We in the Digital Asset Journey?42:07 – Sam's Personal Apology TourDisclaimer For relevant disclosures, visit https://www.tdsecurities.com/ca/en/tds-bidout-episode-49 For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In this second part of our two-part series on options and equity market structure, we are rejoined by Andrew Schultz, Head of Strategic Options Business at Susquehanna International Group, and Mett Kinak, Global Head of Equity Trading, T. Rowe Price Group. In this episode, Mett's feet are put to the fire with respect to SEC Chair Gary Gensler's proposed equity market structure reforms. Mett weighs in on whether auctions modelled after options market structure can be repurposed for retail equity trading. He also raises concerns about potential tick increment reforms, proposed changes that should steer away from one-size-fits-all solutions, and the harmonization of traded prices across all types of venues. Mett concludes the episode with his thoughts on the Gensler agenda from the D.C. Circuit's recent decision on market data governance. Listen in to understand how this decision could be viewed as an ominous cloud over market structure reform. Chapter Headings 1:25 - Retail Auctions: Does This Concept Work in Equities?13:00 - The Tick Increment Reform & Thoughtful Decisions22:20 - Harmonizing Traded Prices Across all Types of Venues25:30 – Best Execution Definitions: Which One Do We follow?27:55 – The Aftermath of the D.C. Circuit Ruling on Market Data GovernanceDisclaimer For relevant disclosures, visit https://www.tdsecurities.com/ca/en/tds-bidout-episode-48 For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In Episode 47, the first of a special, two-part series, we dive into market structure with Andrew Schultz, Head of Strategic Options Business at Susquehanna International Group. We are also joined by Mett Kinak, Global Head of Equity Trading at T. Rowe Price. Together, we discuss the nuances of options trading, as well as the mechanics of auctions for retail orders.  Auctions is a hot topic in equities market structure, especially given SEC Chair Gary Gensler's recent comments on options auctions and order competition. In the second part of this series, we will analyze Gensler's remarks at the Piper Sandler Global Exchange Conference, including his high-level plans for equity market structure reform.Chapter Headings 2:50 - What is Driving Growth in Options Volumes?9:30 - Key Differences in Options vs. Equity Market Structures15:10 - Retail Auctions in Options: How Does it Work?25:00 - Key Options Terms, and What They Mean29:58 - The Best Execution in Options34:41 - Recent Improvements and Next StepsDisclaimer For relevant disclosures, visit https://www.tdsecurities.com/ca/en/tds-bidout-episode-47 For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

In Episode 46, our resident European market structure expert Niki Beattie provides an update on key topics of interest in the UK, and across the continent. Niki addresses the evolving debate on the consolidated tape debate, which raises the question on whether to codify a ban across the entire EU on Payment for Order Flow (PFOF). Niki also examines the post-Brexit listings battle between Amsterdam and the London Stock Exchange (LSE), and she explains how the continent and the UK are diverging on Markets in Financial Instruments Directive (MiFID) rules for dark trading. She believes the pre-pandemic talk of shortening the standard trading day is back on the table. Niki also criticizes the London Metal Exchange (LME) nickel debacle, and she thinks the LME's position is at risk unless management listens to the industry and modernizes. She concludes the episode with her perspective on the potential convergence of digital and equity market structures, firmly believing that the two asset classes may be on a collision course. Chapter Headings What Market Structure Issues are Top of Mind for the European Buy Side? (1:20)Are European SIs Facing the Same Leakage Questions as U.S. Single Dealer Platforms? (13:31)PFOF in Europe and Its Connection to the Consolidated Tape Debate (20:38)What is Driving Amsterdam's Success vs. the LSE in the Listings Battle? (26:00)Revisiting the Length of the European Trading Day (34:00)What Factors Led to the LME Nickel Fiasco? (34:44)Will Digital and Equity Market Structures Converge? (37:48) DisclaimerFor relevant disclosures, visit https://www.tdsecurities.com/ca/en/tds-bidout-episode-46 For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.

Hosted by Peter Haynes, Head of Index and Market Structure Research, Bid Out is a made in Canada podcast series that explores market structure issues impacting trading and portfolio management globally.The monthly series interviews industry leaders and experts across the entire spectrum of capital markets to understand trends and recent developments shaping capital markets. This podcast should not be copied, distributed, published or reproduced, in whole or in part. The information contained in this recording was obtained from publicly available sources, has not been independently verified by TD Securities, may not be current, and TD Securities has no obligation to provide any updates or changes. All price references and market forecasts are as of the date of recording. The views and opinions expressed in this podcast are not necessarily those of TD Securities and may differ from the views and opinions of other departments or divisions of TD Securities and its affiliates. TD Securities is not providing any financial, economic, legal, accounting, or tax advice or recommendations in this podcast. The information contained in this podcast does not constitute investment advice or an offer to buy or sell securities or any other product and should not be relied upon to evaluate any potential transaction. Neither TD Securities nor any of its affiliates makes any representation or warranty, express or implied, as to the accuracy or completeness of the statements or any information contained in this podcast and any liability therefore (including in respect of direct, indirect or consequential loss or damage) is expressly disclaimed. For relevant disclosures, visit: tdsecurities.com/ca/en/legal#PodcastDisclosure. To learn more about TD Securities, visit us at tdsecurities.com or follow us on LinkedIn @tdsecurities.