Question 1 of 30
Ava Rostova is the Chief Compliance Officer at Quantum Securities, a participating organization of the Toronto Stock Exchange (TSX). She\'s reviewing her firm\'s adherence to UMIR Policy 7.1 concerning trading supervision. Quantum Securities has implemented a sophisticated automated system that flags unusual trading patterns. When the system triggers an alert, a compliance officer reviews the activity. If the compliance officer deems the activity suspicious, it\'s escalated to Ava. However, Ava is questioning whether this is sufficient to meet the requirements of UMIR Policy 7.1, particularly given the increased regulatory scrutiny on market integrity. Considering the regulatory landscape and the stipulations of UMIR Policy 7.1, which of the following statements best describes the obligations of the TSX in relation to Quantum Securities\' trading activities?
The TSX is obligated to actively monitor trading activities for rule violations, investigate potential breaches, and take appropriate disciplinary actions against participating organizations, including Quantum Securities, if necessary, ensuring adherence to just and equitable principles.
The TSX's sole responsibility is to provide Quantum Securities with the necessary software and training materials to conduct its own internal surveillance, as the primary responsibility for monitoring lies with the participating organization.
The TSX is only required to review Quantum Securities' trading activities if a formal complaint is filed by another market participant, as the regulatory framework relies on self-reporting and dispute resolution.
The TSX's involvement is limited to conducting annual audits of Quantum Securities' compliance program, focusing primarily on documentation and record-keeping practices, without active monitoring of daily trading activities.

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