Canada Stock Market

Major Stock Exchange Introduction

Canada leads the world in natural resources, around 50% of public resources companies list on Canadian stock exchanges. She is also a leader in renewable energy, which is an important and fast-growing industry. In year 2009, companies from the emerging industries raised fund of US 1.5 billions in Canada.

More than 3600 companies list in Canadian equity market, ranks no.2 in the world. Toronto Stock Exchange is the 8th largest stock exchange group and its market capitalization is more than USD 2000 billions.

Canada has a good foundation and unique economic strengths:

  • Stable political mechanism
  • Steady monetary policy
  • Flexible fiscal policy with 8 years financial surplus
  • Powerful financial institutions

In addition, International Monetary Fund mentioned that Canada has the best bank industry. Some economic organizations even stated Canada would be the best region for doing business among the G7.

Canada has a healthy balance of trade. The US is the most important trading partner of Canada, as they have USD 600 billions trade volume every year. With the increasing trade volume of different commodity products, China is now the second-largest trading partner of Canada.

Toronto Stock Exchange (TSX)

The Toronto Stock Exchange (TSX) is the largest stock exchange in Canada, as well as the 7th largest in the world. The exchange lists more than 3,700 securities and trades an average of 250 million shares per day.

The TSX lists companies from Canada, the U.S., and many other countries, and it has listings from a wide variety of industries. While the Toronto Stock Exchange was historically a floor-based exchange, it now operates electronically.

The TSX is one of two exchanges owned and run by TSX Group. The Toronto Stock Exchange only trades senior equities with strong historical performance, while the TSX Venture Exchange trades shares in new, high growth companies. The Toronto Exchange offers investors more solid, predictable investments. Venture Exchange offers investments with a higher risk, but more potential for growth and therefore higher returns. Companies trading on the TSX Venture Exchange may move to the Toronto Exchange once they meet the requirements.

TSX Venture Exchange (TSE)

The TSX Venture Exchange is a stock exchange in Canada. It is headquartered in Calgary, Alberta and has offices in Toronto, Winnipeg, Vancouver, and Montreal. It was previously known as the Canadian Venture Exchange (CDNX), but in 2001 the TSX Group (now known as the TMX Group) purchased it and renamed it.

The TSX deals mostly with well-established equities, while the TSX Venture Exchange is a public venture capital marketplace for emerging companies that have not yet met the requirements for listing on the TSX.

As of 31 December 2007, the TSX Venture Exchange had 2,176 listed companies with a combined market capitalization of $58 billion. The Canadian Venture Exchange was created in Canadaon November 29, 1999, as a result of an agreement between the Vancouver, Alberta, Toronto and Montreal exchanges to restructure the Canadian capital markets along the lines of market specialization.

The CDNX was created by the merger of the Vancouver Stock Exchange (VSE) and the Alberta Stock Exchange (ASE). The focus of the CDNX was junior companies, i.e., those whose assets, business and market capitalization were too small to be listed on the Toronto Stock Exchange (TSX). Often, these were resource exploration companies, but also came to include new high technology ventures. The exchange had its corporate headquarters in Calgary, Alberta, and its Operations headquarters in Vancouver, British Columbia, with additional offices in Winnipeg, Toronto, and Montreal.

Montréal Exchange (MX)

The Montréal Exchange (MX), Canada oldest exchange, is a fully electronic exchange dedicated to the development of the Canadian derivative markets. The Montréal Exchange or M-X (Bourse de Montréal, formerly Montréal Stock Exchange (MSE)) is a futures exchange, located in Montréal, that trades in derivatives such as futures contracts and options.

At the end of 2001, the Exchange had completed its migration from an open outcry environment to a fully automated trading system, becoming the first traditional exchange in North America to complete this transformation.

In February 2004, Montréal Exchange became the sole provider of electronic trading systems and support for the Boston Options Exchange (BOX), making it the first foreign exchange to be responsible for the day-to-day technical operations of an American exchange. That contract now provides the Montreal Exchange with a significant part of its revenue. The Montréal Exchange has a 31.4 % stake in the Boston Option Exchange (BOX), percentage that has since risen to over 51% (as of September 2009). In December 2007, the Montréal and Toronto exchanges merged.

Major Index Introduction

S&P/Toronto Stock Exchange Composite Index

The S&P/Toronto Stock Exchange Composite Index is a capitalization-weighted index designed to measure market activity of stock listed on the TSX. The index was developed with a base level of 1000as of 1975.

S&P/TSX Venture Composite Index

The S&P/TSX Venture Composite is a broad market capitalization-based index, which is designed to measure the performance of securities listed on the TSX Venture Exchange, which is Canada’s public venture equity market.

Account Opening Procedures

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Trading Information

CountryTrading Session(HongKong)Trade CurrencySettlement Currency & DurationEarliest HK time to accept orders for next trade day
Canada Monday ~ Friday
Summer
21:30 - 04:00
Winter
22:30 - 05:00
CAD CAD
USD
HKD
T + 2
Tuesday ~ Saturday
at 09:00
after previous market close

Commission

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Depository Information

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