The CSE Advantage - Canadian Securities Exchange
CSE is the first full stock market approved by the Ontario Securities Commission in 70 years and has many benefits for emerging companies that simply don’t exist with other stock markets.
Five of the main benefits of listing on the Canadian Securities Exchange are:
- Cost Effectiveness
- Enhanced Disclosure
- Streamlined Regulation
- Central Auction Market
- Approved Market Maker Program
CSE is cost efficient with Initial Listing Fees at only $13,500. Rather than a transaction based model,CSE charges a flat monthly fee of $500 that includes unlimited transactions. Total fees for listing on CSE for the first year are $19,500, and only $6,000 per year after that.
The following chart is a comparison of fees for the TSX-V, TSX and the CSE based on a company with a market capitalization of $25,000,000 with an additional listing of 2,000,000 shares at $1.50 per share.
As you can see CSE fees are 69% lower than the TSX Venture and 65% lower than the TSX.
CSE’s Enhanced Disclosure enables companies to focus on their business while at the same time providing investors with timely information on the Company’s activities. You can do it easily and quickly and focus on building your business!
CSE’s Streamlined Regulatory System ensures there is never any waiting for transaction approvals or reviews. CSE public companies are able to take advantage of opportunities faster and without the associated high costs and time delays of other stock markets. CSE listed companies can close a financing transaction within 24 hours simply by posting the appropriate form on the CSE website and, if the transaction is material, issuing a press release.
Structurally, CSE trading is facilitated by the combination of a central auction market with the added benefit of enhanced trading liquidity provided by a Market Maker Program.
A central auction market is a stock exchange trading system that provides a continuous auction in securities of its listed companies. It has been proven around the world as the most efficient means of trading stock. It is a system that focuses on “time priority” in all trades, which results in all investors being treated fairly.
Enhancing this system are the Market Makers, who are professional traders assigned to provide liquidity. These traders typically account for approximately 25% of all trades on the buy or sell side. In fact, half of CSE listed companies have more than one market maker, and some have up to four professional traders “making a market” for competitive access to their stock.
The Canadian Securities Exchange is also a Designated Stock Exchange under the Income Tax Act, which permits all securities listed on CSE to automatically be eligible for Registered Retirement Savings Plans and Tax-Free Savings Accounts. This is a strong incentive to investors considering acquiring CSE-listed stocks, and puts CSE on an equal footing with other stock exchanges in Canada, encouraging more companies to choose to list on CSE. The full list of Designated Stock Exchanges can be seen on the Department of Finance web site. This designation also applies to the United Kingdom, where CSE is a recognized stock exchange under the Income Tax Act 2007 (UK), affording UK investors and companies the same advantages as Canadians with respect to CSE.
These features combine to make CSE the stock market destination of choice for more and more innovative companies every day. If you are thinking of going public in Canada we would be pleased to assist as your gateway to the Canadian capital markets.
ITB Solutions Incorporated
Peter Traynor, Principal
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