Toronto Stock Exchange

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Toronto Stock Exchange (TSX)
TSXExchangetower.jpg
Type Stock Exchange
Location Toronto, Ontario, Canada
Coordinates 43°38′53.88″N 79°22′59.88″W / 43.6483000°N 79.3833000°W / 43.6483000; -79.3833000
Founded October 25, 1861
Owner TMX Group
Key people Wayne Fox (Chairman)
Tom Kloet (CEO)
Kevan Cowan (President)[1]
Pramod GK
Currency Canadian dollar
No. of listings 1,501 (June 30, 2014)
Market cap $2.575 trillion (June 30, 2014)
Volume 39.7 billion shares (June 30, 2014)
Indexes S&P/TSX Composite
S&P/TSX 60
S&P/TSX Completion Index
Website www.tmx.com

Toronto Stock Exchange (TSX, formerly the TSE) is the largest stock exchange in Canada, the third largest in North America and the seventh largest in the world by market capitalization. Based in Toronto, it is owned by and operated as a subsidiary of the TMX Group for the trading of senior equities. A broad range of businesses from Canada and abroad are represented on the exchange. In addition to conventional securities, the exchange lists various exchange-traded funds, split share corporations, income trusts and investment funds. The Toronto Stock Exchange is the world leader in the mining and oil and gas sector as more mining and oil and gas companies are listed on Toronto Stock Exchange than any other stock exchange.

History[edit]

New Toronto Stock Exchange trading floor, circa 1937-9.
The Art Deco façade of the former Toronto Stock Exchange building, now incorporated into the Toronto-Dominion Centre. Frieze by artist Charles Comfort.
TMX's LED board displaying TSX information

The Toronto Stock Exchange likely descended from the Association of Brokers, a group formed by Toronto businessmen on July 26, 1852. No official records of the group's transactions have survived. On October 25, 1861, twenty-four men gathered at the Masonic Hall to create the Toronto Stock Exchange.[2] The exchange was formally incorporated by an act of the Legislative Assembly of Ontario in 1878.

The TSX grew continuously in size and in shares traded, save for a three-month period in 1914 when the exchange was shut down for fear of financial panic due to World War I. In 1934, the Toronto Stock Exchange merged with its key competitor the Standard Stock and Mining Exchange. The merged markets kept the Toronto Stock Exchange name. In 1977, the TSX introduced CATS (Computer Assisted Trading System), an automated trading system that started to be used for the quotation of less liquid equities.

On April 23, 1997, the TSX's trading floor closed, making it the second-largest stock exchange in North America to choose a floorless, electronic (or virtual trading) environment. The old TSX building later became the Design Exchange, a museum and education centre. In 1999, the Toronto Stock Exchange announced the appointment of Barbara G. Stymiest to the position of President & Chief Executive Officer.

1861–2006 logo of the TSE.

Through a realignment plan, Toronto Stock Exchange became Canada's sole exchange for the trading of senior equities. The Bourse de Montréal/Montreal Exchange assumed responsibility for the trading of derivatives and the Vancouver Stock Exchange and Alberta Stock Exchange merged to form the Canadian Venture Exchange (CDNX) handling trading in junior equities. The Canadian Dealing Network, Winnipeg Stock Exchange, and equities portion of the Montreal Exchange later merged with CDNX.

2006-Current logo of the TSX.

In 2000, the Toronto Stock Exchange became a for-profit company, and in 2001 its acronym was changed to TSX.[2] In 2001, the Toronto Stock Exchange acquired the Canadian Venture Exchange, which was renamed the TSX Venture Exchange in 2002; This resulted in the creation of a parent to the TSX, the TSX Group. This ended 123 years of the usage of TSE as a Canadian stock exchange. On May 11, 2007, the S&P/TSX Composite, the main index of the Toronto Stock Exchange, traded above the 14,000 point level for the first time ever. On December 17, 2008, the TSX for the first time in history was closed for an entire trading day due to a technical glitch.

On February 9, 2011, the London Stock Exchange announced that it had agreed to merge with the TMX Group, Toronto Stock Exchange's parent, hoping to create a combined entity with a market capitalization of $5.9 trillion (£3.7 trillion). Xavier Rolet, who is CEO of the LSE Group, would head the new enlarged company, while TMX Chief Executive Thomas Kloet would become the new firm president. Based on data from December 30, 2010 the new stock exchange would have been the second largest in the world with a market cap 48% greater than the Nasdaq. 8 of the 15 board members of the combined entity will be appointed by LSE, 7/15 by TMX.[3][4] The provisional name for the combined group would be LTMX Group plc.[5] About two weeks after Maple Group launched a competing bid the LSEG-TMX deal was terminated after failing to receive the minimum 67% voter approval from shareholders of TMX Group. The rejection came amidst new concerns raised by bank of Canada governor Mark Carney regarding foreign control of clearing systems and opposition to the deal by Ontario's finance minister.[6][7]

On June 13, 2011, a rival, and hostile bid from the Maple Group of Canadian interests, was unveiled. A cash and stock bid of $3.7 billion CAD, in hopes of blocking the LSE Group's takeover of TMX. The group is composed of the leading banks and financial institutions of Canada.

Hours[edit]

The exchange has a normal trading session from 09:30am to 04:00pm ET and a post-market session from 04:15pm to 05:00pm ET on all days of the week except Saturdays, Sundays and holidays declared by the Exchange in advance.[8]

Companies listed[edit]

Toronto Stock Exchange listed stocks:

0-9 - A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z

As of August 2012, Toronto Stock Exchange had 1,577 listed companies with a combined market capitalization of CAD $1,989,562,971,807.[9]

The exchange is home to all of Canada's Big Five commercial banks—Canadian Imperial Bank of Commerce (CIBC), Bank of Montreal, Bank of Nova Scotia, Royal Bank of Canada and the Toronto-Dominion Bank—making the exchange the centre for banking in the country. This was seen as being most evident during the proposed mergers of Royal Bank with Bank of Montreal, and CIBC with the Toronto-Dominion Bank in 1998. Then Finance Minister Paul Martin blocked the mergers to preserve competition.

The exchange is the primary listing for several energy companies including; Cameco Corporation, Canadian Natural Resources Ltd., Canadian Oil Sands Trust, EnCana Corporation, Husky Energy Inc., Imperial Oil Ltd. and Nexen Inc. all within the top 40 companies listed in on the exchange.

Many of the large companies listed on the TSX, especially those on the S&P/TSX 60 index, have a secondary listing on an American exchange such as the New York Stock Exchange.

See also[edit]

References[edit]

  1. ^ TMX Senior Management
  2. ^ a b Government of Canada The Toronto Stock Exchange
  3. ^ "LSE, Toronto exchange in "merger of equals"". 2011-02-09. 
  4. ^ "Merger Of Equals Will Make Deal More Palatable For Canada Govt". 2011-02-09. [dead link]
  5. ^ Wall Street Journal, "A Combined TMX-LSE Would Be Called LTMX Group", Ben Dummett, 1 June 2011
  6. ^ Erman, Boyd; Howlett, Karen (2011-06-29). "Shareholder reject proposed merger of TMX and LSE". The Globe and Mail (Toronto). 
  7. ^ Erman, Boyd (2011-06-28). "What did Bank of Canada really say about TMX-LSE?". The Globe and Mail (Toronto). 
  8. ^ Market Hours, Toronto Stock Exchange via Wikinvest
  9. ^ [1]

External links[edit]