Business & Investment

Canadian Stock Exchange tightens listing rules

The Canadian Stock Exchange (CSE) has more stringent disclosure and governance rules in place to allow exchange-traded funds (ETFs) and special purpose acquisition companies (SPACs) to be listed for the first time.

Since its founding in 2004, CSE has grown to provide an alternative to the much larger Toronto Stock Exchange (TSX) and has a reputation as a market for entrepreneurs and businesses seeking less stringent listing requirements. Won.

CSE-listed companies must publicly issue at least 10% of their outstanding shares, compared to TSX, which requires a minimum of 20%. CSE-listed companies also have lower asset value requirements and fee payments compared to TSX.

CSE is currently planning to create a new “senior tier” that includes 60-80 companies with final approval from Canadian securities regulators.

To qualify under the new senior level of CSE, companies have a shorter time frame for reporting quarterly financial information and audited statements, and are more stringent with disclosed materials and enhanced governance procedures. Face surveillance. Other criteria that a company must meet include reaching a certain level of market capitalization and revenue, CSE said.

The changes occur when the CSE is preparing to allow ETFs and SPACs to trade for the first time on the exchange. Currently, these securities are not eligible to trade on junior exchanges such as CSE.

Canadian Stock Exchange tightens listing rules Canadian Stock Exchange tightens listing rules

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