The Canadian Securities Exchange (CSE) was established in 2003 and is governed by CNSX Markets Incorporated. The CSE obtained stock exchange status in 2004, and was created to provide companies with a resourceful and contemporary alternative to access public capital markets in Canada. Furthermore, the CSE currently provides over 200 different structured IPs, and government bonds and equities, and continues to expand at an exponential rate in order to meet the discerning needs of its investors.
In addition, the CSE launched the first unremitting auction market in September, 2007. It was established for investors and companies who were looking to trade securities that were listed on alternative Canadian stock exchanges. Interestingly, the newly introduced auction market provides many benefits vis-à-vis other stock exchanges; including an inviting fee configuration; a low-latency environment for trading stocks, and a high capacity milieu that allows investors to use proprietary and state-of-the-art trading technologies that maximise ROI. As a result, the Canadian marketplaces’ competiveness on the worldwide marketing spectrum has risen exponentially. Moreover, it is important to note that CSE listed stocks and symbols on alternative Canadian exchanges have now been conglomerated since “Project One” was completed on December 2, 2013.
In sum, the CSE provides many benefits when compared to other stock exchanges. In addition to being an approved market maker system that boasts streamlined regulation and cost effective measures, the CSE is also a centralized auction marketplace than ensures augmented disclosure. For instance, if we were to compare the initial listing fees of the CSE to the TSX or TSX-V, one would notice that the fees incurred via the CSE are significantly lower than those of the aforementioned stock exchanges (e.g., $12,500 versus $40, 750 & $30,000). Arguably just as important, if not more so, is that the CSE does not use a transaction based modus operandi. In other words, the CSE charges a flat monthly fee of only $500, allowing investors to perform an unlimited amount of transactions at their discretion. In fact, investors can expect to spend only $18,000 worth of annual fees for listing on the CSE during the first year, followed by only $6,000 in annual fees in perpetuity afterwards. Interestingly, if one were to tabulate the initial, sustaining, and additional listing fees of the TSX-V-, TSX, and CSE, the clear advantage that the CSE provides becomes increasingly evident (e.g., $51,000/$58,950/$18,500). That is, CSE total fees are 65{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} lower than those of the TSX and 69{92d3d6fd85a76c012ea375328005e518e768e12ace6b1722b71965c2a02ea7ce} lower than the fees incurred by the TSX Venture. Ergo, the CSE is the quintessential choice for innovative companies that are looking to go public in Canada.
For more detailed information on the CSE please visit their official website.
Written by: Prakash Mylvaganam