by Greg Klein | November 28, 2014
“There is no other public venture market like TSX Venture Exchange anywhere in the world,” said TSXV president John McCoach. His boasting was prompted by the Venture’s 15th birthday on November 28.
The institution began in 1999 when the Vancouver and Alberta stock exchanges merged to form the Canadian Venture Exchange (CDNX). The Canadian Dealing Network, Winnipeg Stock Exchange and equities portion of the Montreal Exchange later merged with CDNX, which was acquired by the Toronto Stock Exchange in 2001. The following year CDNX was renamed the TSX Venture Exchange.
Since 1999 TSXV companies have raised $81.5 billion, the TMX Group stated. The Venture now hosts nearly 2,000 issuers with market caps totalling $28.9 billion. As of October they pulled in $4.3 billion. Over 600 companies have graduated to the big board since 2000.
But the Venture has faced stronger competition from the Canadian Securities Exchange after Ned Goodman joined CNSX Markets as a strategic investor and chairperson last year. An outspoken critic of the TSXV, he called it “a feeding source for the legal community.”
Around the same time CNSX Markets CEO Richard Carleton said, “All of the alternative market operators are in favour of change and my colleagues at the TMX Group, who will lose money and improve the visibility of their competition, are not.”
Earlier this month the Ontario Securities Commission approved the Aequitas Neo Exchange, which is expected to begin operations in the first half of 2015. The new exchange plans to deter high-frequency traders by subjecting them to processing delays and higher fees.
Last month the TMX Group announced its Alpha exchange would also get a “speed bump.”
The TMX Group describes the Venture as “a global leader for mining and energy finance, as well as technology and innovation financings.”
In other stock exchange news on November 28, China has once again overtaken Japan as the world’s second-largest bourse, Bloomberg reported. The Chinese exchange’s total market cap comes to $4.48 trillion, a 33% increase this year, according to the news agency. The Japanese exchange fell to $4.46 trillion, a 3.2% drop since the end of December.