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TSX-V Commits to Revitalizing

By: Mujir A. Muneeruddin | TMX and TMX-V | April 8, 2016

The TSX Venture Exchange (the "Exchange") provided an update on efforts its leadership team has made over the past few months to find "progressive solutions" to current challenges in economic conditions, particularly the current "sustained downturn in commodities". Implicitly acknowledging that it is heavily hinged upon commodities, the Exchange acknowledged that its model "must continue to evolve". As a result, the Exchange offered details of its plans to "reinvigorate and revitalize Canada's public venture market", proposing the following:

  1. reducing administrative and compliance costs in a manner that does not compromise investor confidence;
  2. expanding the base of investors that provide financing as well as enhancing liquidity; and
  3. diversifying its stock list to increase the market's overall attractiveness.

Tangible Initiatives

Among other things, the Exchange revealed the following key initiatives:

  • drafting policy revisions to eliminate the general requirement for sponsorship (which are anticipated to be  filed shortly for regulatory approval)
  • eliminating shareholder approval requirements in certain circumstances (which are expected to be filed for regulatory approval shortly)
  • providing automated online filings for certain transactions, in addition to those currently provided for private placements, with other facilities, such as the ability to make electronic payments, soon expected to follow
  • tasking an action team with developing a system for determining "active and proven" status for directors and officers
  • making a submission to the House of Commons' Standing Committee on Finance advocating for the expansion of the flow-through share program to the technology and innovation sectors

The Exchange also clarified that it would not be pursuing an aggressive delisting of companies that have had a challenging time in the current market downturn.

What this means

The update provided by the Exchange indicates that many positive changes could be coming for the market. However, many of the significant changes have yet to be implemented or receive final regulatory approval. That said, if significant relief to stakeholders is indeed forthcoming, then it should arrive in the coming months given the aggressive timelines set by the Exchange for final submission/approval.

 

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