Mr. Mark Faulkner reports

CANADIAN SECURITIES EXCHANGE: NOTICE OF APPROVAL

In accordance with the process for the review and approval of rules and the information contained in Form 21-101F1, Canadian Securities Exchange's CNSX Markets Inc. has adopted, and the Ontario Securities Commission (OSC) has approved, significant changes to the trading system. On Sept. 22, 2017, CNSX Markets published Notice 2017-016 (Amendments to Trading System Functionality and Features -- Request for Comment), describing several new order types proposed by the CSE. The period for public comment expired on Oct. 16, 2017. No comment letters were received.

Description of the amendments

The changes included new order types and enhancements to existing order types. The full text of the amendments is available in Notice 2017-016 on the CSE website.

Changes to proposed amendments

The proposed minimum quantity order type will be simplified, such that it will be cancelled rather than placed in the terms book, if the minimum quantity specified is not filled upon entry. It will be renamed minimum volume order for clarity. Changes to the published proposal are indicated herein.

Minimum quantity volume order

Minimum quantity volume order is a visible order that will trade only against contra orders with a combined volume equal to or greater than the specified minimum. The minimum quantity volume order will trade actively against lit orders in the book and dark orders, but only if there is a sufficient combined volume to completely fill the minimum quantity volume specified on the order. If the minimum quantity volume order does not fill, it will be posted in the terms book cancelled. An active contra order with remaining volume equal to or greater than the specified minimum volume will trade with minimum quantity orders after any similarly priced orders in the lit book have traded.

Implementation

The changes will be included in the planned first quarter and third quarter 2018 system releases. Questions about this notice may be directed to: Mark Faulkner, vice-president, listings and regulation, Mark.Faulkner@thecse.com or 416-367-7341.