Canadian Securities Exchange Securities Eligible for Margin
June 15, 2023 – Toronto, ON – The Canadian Securities Exchange (“CSE” or “the Exchange”) is pleased to announce that the Canadian Investment Regulatory Organization (“CIRO”) has identified the CSE as an “acceptable exchange” under its margin eligibility rule. The CIRO decision is immediately applicable to all CSE-listed securities and provides substantial benefits for issuers, investors, and the investment industry.
- Investment dealers will have the choice to allow clients to hold CSE-listed securities in margin accounts, thus enhancing liquidity in these securities.
- Margin eligibility reduces capital costs for investment dealers holding CSE securities in firm inventory, thereby reducing the cost of public offerings for issuers.
- The cost to include CSE-listed securities in exchange-traded funds and other exchange-traded products is expected to decline.
- The change is a necessary step toward the creation of single stock options on price and liquidity eligible CSE securities, further enhancing the liquidity and price discovery for the underlying securities.
“This is a very important development for CSE-listed issuers and their investors. Margin eligibility significantly increases the attractiveness of a CSE listing and provides the benefits of reduced costs and increased liquidity for many stakeholders,” said Richard Carleton, CEO of the CSE.
“The CSE is the clear leader among Canadian exchanges in corporate listings growth this year, and margin eligibility for our securities only strengthens our ability to attract and retain high-quality issuers. We thank the staff of CIRO for their work on the notice.”
For further information on CIRO’s announcement regarding margin eligibility that confirms the CSE as an “acceptable exchange,” please click here to view the full bulletin.
About the Canadian Securities Exchange:
The Canadian Securities Exchange is a rapidly growing exchange invested in working with entrepreneurs, innovators, and disruptors to access public capital markets in Canada. The Exchange's efficient operating model, advanced technology, and competitive fee structure help its listed issuers of all sectors and sizes minimize their cost of capital and enhance global liquidity.
Our client-centric approach and corresponding products and services ensure businesses have the support they need to confidently realize their vision.
The CSE offers global investors access to an innovative collection of growing and mature companies.
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Richard Carleton, CEO