Under what circumstances will active quotes be paused or affected temporarily?

Active quotes may not be continuous because liquidity providers may need time to pause the provision of active quotes for a reasonably short period of time to adjust quote parameters in response to market conditions or operational needs.

Common causes of these short interruptions include the following:

(a) a sudden or material change in the trading pattern of the warrant or CBBC, such as where a relatively inactive warrant suddenly becomes active;

(b) news is published that might have an impact on the market price of the underlying. For example, a change in forecast earnings or proposed dividends;

(c) the underlying or the stock market experiences exceptional price movement or high volatility over a short period of time which materially affects the liquidity provider’s ability to source a hedge or unwind an existing hedge

(d) the underlying stock trades at a wider bid-ask spread than normal which causes the spread in the warrant or CBBC to exceed the maximum level specified in paragraph 4.9 of the Industry Principles;

(e) the liquidity provider reasonably suspects any potential mispricing, system issue or error;

(f) the liquidity provider reasonably suspects abnormal trading in respect of the underlying;

(g) operational and technical problems such as computer network disconnection, loss of data feed, loss of connectivity with the Exchange or technical issues which arise in the issuer’s computer system; or (h) the liquidity provider will suffer, or expects to suffer, a financial risk due to frequency of trades and quantity of trades in relation to its warrants or CBBCs.