The Toronto Stock Exchange (TSX) is proposing to introduce listing requirements for the growing crop of non-corporate issuers, such as exchange traded funds (ETFs), closed-end funds, and structured products.

The exchange has published a set of proposed rule amendments for comment that would introduce listing requirements for exchange-traded products (including both ETFs and exchange-traded notes (ETNs)), structured products, and closed-end funds. In a notice detailing the proposals, the TSX indicates that the ranks of ETF providers has been growing in recent years, and it expects more to enter the market in the years ahead. And, while structured products aren’t typically listed on exchanges, it says that there may be benefits to such public listings, so it’s proposing a set of rules devoted to listing these vehicles, too.

The TSX indicates that it is proposing different listing standards for different types of products to reflect the fundamental differences in the trading, liquidity and ability to raise additional funds for each category. For instance, it notes that it is proposing a low initial public offering (IPO) minimum and market capitalization requirement for ETPs “as they are able to continuously offer additional securities from treasury and grow assets under management and their market capitalization once listed.” The TSX is proposing a $1 million minimum market capitalization requirement for listing ETPs on TSX “primarily because ETPs are in continuous distribution and redemption.”

But for closed-end funds, it is setting the minimums higher and setting specific distribution requirements “to ensure that there is sufficient liquidity and trading in the secondary market”. For closed-end funds it is proposing $20 million as an appropriate minimum, which is also consistent with existing TSX practice.

Whereas, for structured products, it says that it is proposing a lower minimum IPO raise, or market capitalization requirement, “because these products have short or medium term expiry dates and trading liquidity may be supported by the issuer, acting as market maker.” Citing the limited need for liquidity and short product life, the TSX is proposing $1 million of market capitalization as a minimum for these vehicles.

Comments on the proposals are due by March 16.