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Canadian Securities Exchange Creates "Senior Tier"; Positions To Compete with TSX

Published 2023-03-30, 12:57 p/m
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By Ketki Saxena 

Investing.com – The Canadian Securities Exchange has announced plans to launch a “senior tier” for the largest issuers on its platform, providing these companies with access to a lower cost of capital and a wider investor base.

108 CSE-listed companies will begin transferring to the new tier in May, of which 39 are in the cannabis industry, 29 are mining companies and 15 are tech firms. 

“The ultimate object of the exercise here is to ensure that senior companies receive a lower cost of capital,” said CSE chief executive Richard Carleton. 

By lowering the cost of fundraising and having reduced requirements for margin trading, the move is also designed to help position the CSE to compete more directly with the larger Toronto Stock Exchange (TSX).

The Investment Industry Regulatory Organization of Canada (IIROC) publishes a list of companies that are eligible for reduced margins. Currently, only TSX, TSX-V or NEO Exchange listed companies are on that list. With its senior tier, the Canadian Securities Exchange is aiming to have CSE listed companies included.

“Our job is to provide an environment where the cost of raising funds is as low as possible and if that happens to be more competitive than other markets that they could list on in Canada then that is a very powerful indication that we are on the right track,” Mr. Carleton said.

“This is very much a case of us wanting to grow alongside our largest and most successful issuers.”

CSE noted that it has taken three years of working with the Ontario Securities Commission and the British Columbia Securities Commission to win regulatory approval for the senior tier. 





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