What is the CSE?
The CSE is an acronym for the Canadian Securities Exchange, previously called Canada’s New Stock Exchange (CNQ). It made this rebranding effort in 2008. It is a smaller, more alternative Canadian market founded in 2003. With bases in both Toronto and Vancouver, it has around 580 companies listed and is currently operated by CNSX Markets Inc. Something unique about this exchange is its lack of any physical trading floor. Instead, it works only electronically and uses price-time priority during the trading process.
The CSE is regulated by the Ontario Securities Commission, which enforces securities regulation in Ontario’s province. The exchange’s regulation efforts have allowed it to develop specific key characteristics. It works to prevent duplicate regulation between the provincial securities commissions and the exchange itself by simplifying reporting requirements.
The result is reduced wait times for transaction reviews and approvals. It usually means that companies can get listed on the exchange faster and at lower costs. The Canadian Securities Exchange often attracts smaller companies who may be emerging and helps boost investor confidence in these smaller companies. It is also popular with micro-cap companies.
CSE Listing Process
To be listed on the Canadian Securities Exchange, new companies must meet a few different requirements. Usually, a company must prove that they have liquid assets. This includes things like cash, mutual funds, and money market assets. In place of liquid assets, companies may also present a detailed plan to achieve and sustain their goals. The CSE Composite Index is the primary index for market activity on the exchange. It is used the most for the small-cap market in Canada.
One of the most critical moments in the London Stock Exchange’s regulatory history was an event known as the “Big Bang.” In 1986, the UK government ushered in major waves of deregulation. The deregulation included a switch from a traditional open outcry trading system to a screen-based electronic system. It also got rid of fixed commission charges. Many of these deregulation efforts opened the LSE up to global traders and allowed it to compete with other major markets.