Toronto stock exchange
Toronto stock exchange (TSX, known as TSE earlier) is the largest stock exchange in Canada, in addition to being the seventh largest in the world in terms of market capitalization. It is based in Toronto and is owned by the TSX group. A vast range of businesses primarily from Canada and the US, along with other countries are being undertaken in the exchange. In addition to the traditional securities, different exchange-traded funds, income trusts and investment funds are also listed in the exchange.
History: the history of the toronto stock exchange stretches as far as 1852, when a brokers association was formed in Toronto. The exchange officially started operating in 1861 with 18 securities being traded. It made slow progress in the decades that followed until the 1st world war. After the war, the industrialization in Canada resulted in huge investments and because of the same, TSX experienced sudden growth and by the 1920 s, it was trading more than 10 million shares per year.
In the 1930 s, to cope with the financial crisis that followed after the huge crash in the stock markets, TSX merged with one of its major competitor, the Toronto stock and mining exchange, which resulted in the rapid growth of TSX and it, became the third largest exchange in the whole of
In 1955, the price for a seat rose as high as $100,000, and by 1958, TSX started requiring formal disclosures from its listed companies for anything which could influence the prices of their respective offerings.
In 1977, TSX became the first stock exchange to introduce computerized trading and in the same year, it developed the TSE 300 index, comprising 300 representative stocks which are regularly reviewed.
In 1987, the year when the world's stock market experienced a huge crash which created a slump in the major indices. The TSE 300 dropped by more than 300 points and the TSX overall lost $37 billion. A new index named Toronto 35 was created in the same year, which consisted of 35 of Canadas biggest corporations.
Towards the 1990 s, TSX asserted its authority in various areas by becoming the first exchange to introduce decimal trading, becoming the largest fully electronic stock exchange in North America, to name a few. In 1999, TSX worked towards turning itself into a public company by obtaining vice-regal to become a for-profit organization.
In 2002, TSX went public and started trading its own shares, which needed a stronger focus on independence and more professional governance from its director board. The regulatory duties were transferred to Market Regulation Services Inc and the investment dealers association, which was among the other steps that TSX took to retain its integrity. Further, the responsibility for the TSE 300 was assumed by the Standard and Poor and it was renamed as S & P/TSX Composite index.
In 2004, TSX expanded its circle of activities further and entered into the trading of natural resources after it acquired NGX Canada Inc. the TSE group today, in addition to operating all of the Canadian stock markets, also operates an exchange where natural gas and electricity contracts are traded.
'Products and services offered by TSX : TSX Datalinx offers a wide range of real-time and historical data products and services to customers all around the world.
A. Real-time market data: TSX Datalinx provides real-time information regarding quotes and trade, both for Toronto stock exchange and TSX Venture exchange. TSX Datalinx also provides real-time quote and trade information for CNQ, Canada's new stock exchange, as well as real-time pre-trade information for Candeal. TSX FX offers accurate coverage in the market at an affordable price, for those involved in the foreign exchange trade.
B. Providing historical market data: TSX Datalinx provides a wide range of historical stock market data products to customers in 'North America and around the world. Many of the products are available online through TSXdatalinx.com in a variety of formats. They could be saved from the site, received by email or downloaded through FTP.
C. Regulatory and depository products: TSX has introduced a number of regulatory and depository products on behalf of CDS Innovations Inc (a subsidiary of Canadian depository for securities).
' SEDAR' SCRIBE ' Regulatory documents filed with Canadian securities regulators in the system for Electronic Document Analysis and Retrieval (SEDAR) real time, from the moment they are made public
' SEDI'-SCRIBE ' Canadian insider transactions as reported to Canadian securities regulators through the system for electronic disclosure by insiders.
' Entitlements messaging- provides the subscribers, complete and updated information which includes comprehensive corporate action information, in a field based format, compliant with ISO 15022.
CDS Enhanced bulletins - a web service which provides exclusive coverage on corporate actions for Canadian equity and debt services.
' Strip bond reports- this contains four reports which provide listing details and statistics for the Canadian strip bond market.
' Reg SHO threshold securities list ' reports on threshold securities identified by U.S self-regulatory organizations.
D) Third party products: TSX teaming up with third parties, offer a wide range of additional products and services, delivering comprehensive coverage on Canadian capital markets.
Third party equities: TSX Datalinx provides market data distribution services for both CNQ and Market Securities Inc. Markets Securities Inc. which is an Alternative Trading System (ATS), provides a network for block trading in Canadian equities. Market Inc's trade data, BlockBook is available through LinxPointOne, TSX Datalinx' s data distribution product.
Fixed income: retail and institutional investors can get access to the highest level of transparency for Canada's debt market place, through the CanDeal Market Data Service.
Foreign exchange: TSX FX provides quality coverage in the marketplace at an affordable cost. Bid and ask prices, currency code identification, time stamps and key global rates are among the services offered by TSX FX.
To get listed: a company wishing to be listed and continue to be so with the TSX, is set some basic requirements that they must meet. To detail a few, the company must have 1 million shares that can be traded freely with a market value of a minimum of $4m. These shares must be held by at least 300 shareholders who, in turn, must hold a minimum number of shares.
Listing fees for Canadian companies are between $15000 and $150000 per class of share a company wishes to list. If listed, the company must pay a regular fee to maintain its listing. Besides this, there are other fees also payable to investment dealers, provincial securities commissions and to professional like lawyers and accountants.
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