Toronto Stock Exchange

Toronto Stock Exchange (TSX)
TSX New.svg
The current White Logo
TypeStock exchange
LocationToronto, Ontario, Canada
Coordinates43°38′53.88″N 79°22′59.88″W / 43°38′53.88″N 79°22′59.88″W / 43.6483000; -79.3833000
Founded25 October 1861; 156 years ago (1861-10-25)
OwnerTMX Group
Key peopleLou Eccleston (CEO, TMX Group)[1]
CurrencyCanadian dollar
No. of listings2,207 (March 30, 2017)[2]
Market cap$2.2841 trillion (March 30, 2017)
Volume39.7 billion shares (June 30, 2014)
IndicesS&P/TSX Composite
S&P/TSX 60
S&P/TSX Completion Index

The Toronto Stock Exchange (often abbreviated as TSX) is a stock exchange in Toronto, Ontario, Canada. It is the ninth largest exchange in the world by market capitalization. Based in the Exchange Tower in Toronto's Financial District, the TSX is a wholly owned subsidiary of the TMX Group for the trading of senior equities. A broad range of businesses from Canada and abroad are represented on the exchange. In addition to conventional securities, the exchange lists various exchange-traded funds, split share corporations, income trusts and investment funds. More mining and oil and gas companies are listed on Toronto Stock Exchange than any other stock exchange.


New Toronto Stock Exchange trading floor, circa 1937-39
The Art Deco façade of the former Toronto Stock Exchange building, now incorporated into the Toronto-Dominion Centre. Frieze by artist Charles Comfort.
TMX's LED board displaying TSX information
TSX closing point displayed at Scotia Plaza

The Toronto Stock Exchange likely descended from the Association of Brokers, a group formed by Toronto businessmen on July 26, 1852. No records of the group's transactions have survived. On October 25, 1861, twenty-four men gathered at the Masonic Hall to create the Toronto Stock Exchange.[3] The exchange was incorporated by an act of the Legislative Assembly of Ontario in 1878.

The TSX grew continuously in size and in shares traded, save for a three-month period in 1914 when the exchange was shut down for fear of financial panic due to World War I. In 1934, the Toronto Stock Exchange merged with its key competitor, the Standard Stock and Mining Exchange. The merged markets kept the Toronto Stock Exchange name. The TSX opened its new trading floor and headquarters in an Art Deco building on Bay Street in 1937.[4] In 1977, the TSX introduced CATS (Computer Assisted Trading System), an automated trading system, and began to use it for the quotation of less liquid equities.

In 1983, the TSX vacated its Art Deco headquarters on Bay Street and moved into the Exchange Tower. The old TSX building later became the Design Exchange, a museum and education centre.[4]

On April 23, 1997, the TSX's trading floor closed, making it the second-largest stock exchange in North America to choose a floorless, electronic (or virtual trading) environment. In 1999, the Toronto Stock Exchange announced the appointment of Barbara G. Stymiest to the position of President & Chief Executive Officer.

Through a realignment plan, Toronto Stock Exchange became Canada's sole exchange for the trading of senior equities. The Bourse de Montréal/Montreal Exchange assumed responsibility for the trading of derivatives and the Vancouver Stock Exchange and Alberta Stock Exchange merged to form the Canadian Venture Exchange (CDNX) handling trading in junior equities. The Canadian Dealing Network, Winnipeg Stock Exchange, and equities portion of the Montreal Exchange later merged with CDNX.

In 2000, the Toronto Stock Exchange became a for-profit company, and in 2001 its acronym was changed to TSX.[3] In 2001, the Toronto Stock Exchange acquired the Canadian Venture Exchange, which was renamed the TSX Venture Exchange in 2002; this resulted in the creation of a parent to the TSX, the TSX Group. This ended 123 years of the usage of TSE as a Canadian stock exchange. On May 11, 2007, the S&P/TSX Composite, the main index of the Toronto Stock Exchange, traded above the 14,000 point level for the first time ever. On December 17, 2008, for the first time in TSX history, the exchange was closed for an entire trading day due to a technical glitch.

On February 9, 2011, the London Stock Exchange announced that it had agreed to merge with the TMX Group, Toronto Stock Exchange's parent, hoping to create a combined entity with a market capitalization of $5.9 trillion (£3.7 trillion). Xavier Rolet, who is CEO of the LSE Group, would head the new enlarged company, while TMX Chief Executive Thomas Kloet would become the new firm president. Based on data from December 30, 2010 the new stock exchange would have been the second largest in the world with a market cap 48% greater than the Nasdaq. 8 of the 15 board members of the combined entity will be appointed by LSE, 7/15 by TMX.[5][6] The provisional name for the combined group would be LTMX Group plc.[7] About two weeks after Maple Group launched a competing bid the LSEG-TMX deal was terminated after failing to receive the minimum 67% voter approval from shareholders of TMX Group. The rejection came amidst new concerns raised by Bank of Canada governor Mark Carney regarding foreign control of clearing systems and opposition to the deal by Ontario's finance minister.[8][9]

On June 13, 2011, a rival, and hostile bid from the Maple Group of Canadian interests, was unveiled. A cash and stock bid of $3.7 billion CAD, in hopes of blocking the LSE Group's takeover of TMX. The group is composed of the leading banks and financial institutions of Canada.

In March 2015, a competing exchange, Aequitas Neo, opened for trading, listing 45 issues that had been listed only on the TSX. The new exchange aims to focus on fairness, specifically regarding what it refers to as "predatory high-frequency trading practices". The exchange plans to list additional TSX-listed securities.[10][11][12]

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