>>How TSE/MSE decides on what options are traded?
It's been a while since I've looked at the criteria, but the old PEA (participating exchange agreement) set out various thresholds stocks had to reach--trading volume, QMV, block-free float, earnings, etc. If it passed these, it was placed on the 'options eligible' list. Traders could then apply to their exchange to call a lottery to try to pick that class for trading. This has of course all ended with the 'consolidation' of options trading in Montreal.
One of the many issues I have with the TSE is that when the MOU was signed to effect the consolidation, the TSE promised to use its powers to prevent any new products from being listed. This meant we were not allowed to list RIM and a bunch of others in the last year or so. (RIM was subsequently listed on the ME). To my mind this smacks of restraint of trade with a dash of collusion thrown in. But what do I know? I'm only a trader, not a lawyer.
Thanks to those of you encouraging me to post from Montreal. Be careful what you wish for! I'm taking my English-speaking laptop with me, so my posts won't need translation. (That's just a little joke, although there's a lot about Bill 101 I have to learn).
Malheuresment, je parle seulement un petit peu de la francais.
(But it should get better).
Happy trading.
Porter |
