Friday February 12 2016

News Source: Global Exchanges

Focus: Trading Rules

Type: General




The Toronto Stock Exchange has adopted, and the Ontario Securities Commission has approved, amendments to Appendix D—Toronto Stock Exchange Evidence of Security Ownership of the TSX Company Manual.

On May 21, 2015, TSX published a public consultation seeking feedback on whether it should apply the Non-Exempt Certificate Requirements to all listed issuers and eliminate the Exempt Certificate Requirements. TSX received three comment letters from two commenters in response to the Public Consultation.

Based on comments received from the Public Consultation, TSX understands that applying the Non-Exempt Certificate Requirements to all listed issuers will reduce the costs of producing customized security certificates for Exempt Industrial Companies. The primary difference between the Exempt Certificate Requirements and the Non-Exempt Certificate Requirements is the amount of intaglio printing that is required. While the Exempt Certificate Requirements require more square inches of intaglio content by requiring intaglio printing of the vignette, general promissory text and open throat area, the Non-Exempt Certificate Requirements require intaglio printing of the border or panel portions of the certificate and the denomination counter. TSX understands that the additional intaglio printing results in higher printing costs for issuers.

Additionally, TSX understands that the rules of the New York Stock Exchange do not require security certificates to have security features comparable to the Exempt Certificate Requirements and that NASDAQ does not have requirements regarding the form of security certificates. Similarly, TSX understands that other Canadian stock exchanges do not have requirements for security certificates equivalent to the Exempt Certificate Requirements.

Therefore, based on comments received, TSX is amending Appendix D by removing the Exempt Certificate Requirements.

TSX will monitor Canadian and international industry initiatives in this space, including the possible introduction of a shortened settlement cycle (T+2), and if necessary, review TSX`s security certificate requirements in light of any such developments.

Click on the link above for further details.