![]() ![]() Anastasopoulos at the TSX, was one of “probably 150 conversations we would have had last year with companies on other marketplaces.” “It has definitely given us more exposure publicly and opened up our ability to attract a wider audience of investors.” “We approached the TSX, and for a public company, if we are able to list on the TSX with its broader reach and access to a wider investor base, that was super compelling for us,” said Dean Skurka, WonderFi’s president and interim chief executive. Schmitt claims there was a “very intense debate” at WonderFi “about whether or not they should move their listing.” But from the company’s perspective, the decision was easy. The Vancouver-based operator of cryptocurrency exchanges Bitbuy and Coinberry initially went public on the NEO in August, 2021, only to switch to the TSX less than one year later, in June, 2022. is one relatively recent example of the TSX successfully attracting a listing away from NEO. “If you had told me 10 years earlier that would happen I would have laughed at you.” “One thing that is important to point out in that respect is in 2021, for the first time ever, our technology franchise surpassed our mining franchise in Canada in terms of market cap,” Mr. TSX CEO Loui Anastasopoulos has a business development team dedicated to engaging with science and tech companies, including those already listed on other public exchanges, with the explicit goal of convincing them to move their listings to the TSX. The S&P TSX composite index screen at the TMX Market Centre in downtown Toronto on Nov. That is where, he said, an upstart challenger needs “a little help from the incumbent” in order to be successful. “And to do that, it is going to take quite a large concentration of market cap somewhere other than the TSX-owned exchanges.” It would take a similar groundswell to get the same thing to happen in Canada, Mr. “It wasn’t until the 1990s when they began including companies like Microsoft in the S&P 500 that was only after portfolio managers and pension funds who are benchmarked off of those indices basically said to S&P, ‘What are you doing excluding these huge drivers of economic growth?’ ” “It used to be that you had to be listed on the New York Stock Exchange” in order to join an index, he said. Carleton notes that was not always the case. While the major indexes in the United States, such as the 30-stock Dow Jones Industrial Average or the S&P 500, do not require members to be listed on a particular exchange, Mr. “The incumbent exchange group really has a monopoly on index membership.” “It is an issue that has been a concern for us and for, shall we say, other competitors in Canada,” Mr. The S&P/TSX 60 launched at the end of 1998. Richard Carleton helped to write those rules when he was vice-president of index and market data services at the TSX in the late 1990s. “There is that one little rule at the bottom of that piece of paper that says you must be listed on the TSX to be in the index.” “That ultimately prevented RBC and a number of our other shareholders, who are also public companies, from embracing our exchange with their listings,” Erik Sloane, NEO’s chief revenue officer, said in an interview. Many large investors and fund managers require index membership for holding a stock, meaning they would all be forced to sell their RBC shares if that circumstance were to arise. As a result, even though Royal Bank of Canada was among NEO’s founding shareholders, moving its stock listing to that exchange would get RBC booted from the S&P/TSX 60. Members of major indexes such as the S&P/TSX 60 Index are effectively banned from leaving the TSX without losing their lucrative index membership.
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