TMX Group, Canadian Stock Exchange

TMX Group

The Toronto-based TMX Group operates multiple exchanges across Canada that facilitate the trading of stocks, including equity, debt, and derivatives. Among its exchanges are the Toronto Stock Exchange (TSX), the Montreal Exchange, the Canadian Derivatives Clearing Corporation, and others. The TMX Group is owned by the Ontario Teachers’ Pension Plan and a consortium of investors is listed on the New York Stock Exchange and has offices in 10 countries.

TSX

The Toronto Stock Exchange (TSX) is Canada’s largest stock exchange. It was created in 1882, making it the world’s most senior public stock exchange. The TSX is owned by TMX Group, which also operates other exchanges across Canada, including the Montreal Exchange and the Canadian Derivatives Clearing Corporation. The TSX operates under the jurisdiction of the Ontario Securities Commission and has its headquarters at the First Canadian Place building in Toronto. The TSX is a broad-based equity market, facilitating the listing, trading, and clearing of equity securities, including common shares and preferred shares. It is the world’s 11th-largest stock exchange in terms of market capitalization and trading value. The TSX is also the largest exchange in North America by market capitalization.

What is the TSX?

The TSX is Canada’s main equity market, used primarily by Canadian companies to raise capital by listing their shares and selling them to investors. The TSX operates as both an exchange (a place where securities are bought and sold) and a clearing house (a centralized facility that matches buyers and sellers and acts as their agent). The TSX includes Canadian companies of all sizes and also foreign companies that are listed in Canada through a process called “Canadian Depository Receipts” (CDRs).

What is the TMX Group?

The TMX Group operates multiple exchanges across Canada that facilitate the trading of stocks, including equity, debt, and derivatives. The group also operates clearinghouses that match buy and sell orders, ensuring that trades are completed. The group’s exchanges are the Toronto Stock Exchange, the Montreal Exchange, the Canadian Derivatives Clearing Corporation, and others. The group is owned by the Ontario Teachers’ Pension Plan and a consortium of investors is listed on the New York Stock Exchange and has offices in 10 countries. The group also operates North America’s leading pension risk management service and is the largest manager of assets used for pension fund management in Canada.

How are they different?

The TMX Group operates the Toronto Stock Exchange (TSX), Montreal Exchange, Canadian Derivatives Clearing Corporation, and other Canadian exchanges. It also operates Canadian equities markets for small and medium-sized companies, including the Venture Exchange and the Canadian Innovation Exchange. The TSX is Canada’s largest equity market, facilitating the listing, trading, and clearing of equity securities, including common shares and preferred shares. It is the world’s 11th-largest stock exchange in terms of market capitalization and trading value. The TSX is also the largest exchange in North America by market capitalization. The TMX also operates the Canadian Securities Exchange, which mainly facilitates the trading of equity securities issued by companies in the U.S., Canada, and select countries in Europe.

Differences in listings and operations

The TSX and TMX Group operate on different listing standards. The TSX has higher listing requirements than those of the TMX Group, allowing the TSX to list more companies. For example, the TSX requires that a company’s shares be fully paid, while the TMX Group does not have this requirement. Both exchanges have operations in different locations across Canada, which may affect the speed at which markets operate as well as the liquidity of the markets.

Directory of Canadian Companies on the Exchanges

- TSX: Canadian companies such as Bombardier, Blackberry, and Shopify are listed on the TSX.

- TSXV: Companies such as Aurora Cannabis, Axiom Gold, and Hudson Bay Mining are listed on the TSXV.

Key takeaway

The Toronto Stock Exchange (TSX) is Canada’s largest stock exchange and facilitates the listing, trading, and clearing of equity securities, including common shares and preferred shares. The TMX Group operates multiple exchanges across Canada, including the Toronto Stock Exchange, Montreal Exchange, and Canadian Derivatives Clearing Corporation. It also operates Canadian equities markets for small and medium-sized companies, including the Venture Exchange and the Canadian Innovation Exchange. The TSX and the TMX Group have different listing requirements and different operations across the country. The TSX has higher listing requirements and operates in more locations than the TMX Group. Additionally, the TSX has more stringent listing requirements, meaning that more companies are listed on the TSX than the TMX Group.