CNQ today reported that the total capitalization of the equity securities of its listed companies has exceeded the $1 billion mark representing the attainment of an important milestone in the success and growth of Canada’s new stock exchange.
During the first half of 2007, new listings on CNQ have grown by a remarkable 35%. Transactions are up 65% and the value of trading has increased by 140% over the same period last year. The significant growth in the value traded comes on the heels of eight consecutive months of increases dating back to September 2006. The average market cap per company has increased 28% to $15.4 million and upwards of $90 million in new capital has been raised by CNQ listed companies during the first half of the year.
“Behind the numbers is a fantastic Canadian success story that is a testament to the calibre of our listed companies,” says Robert Cook, president of CNQ. “The exchange continually seeks to enhance the quality of the issues we list and the recent addition of Manitoba bonds is an excellent illustration of our progress.”
CNQ’s regulatory model stresses enhanced corporate disclosure giving investors the opportunity to make more informed investment decisions. Each company has its own page in the Listings Disclosure Hall on www.cnq.ca, which acts as a central repository for all company regulatory and CNQ filings as well as market information including depth with a 15 minute delay.
Recently, CNQ introduced measures to enhance the transparency of its marketplace by amending its order entry rules. Now all CNQ dealers are permitted to enter their own orders directly, rather than having a Market Maker enter them on behalf of the Dealer. To encourage their continued contribution of liquidity to the market, passive and odd lot trades by designated market makers are fee exempt.
“Feedback from CNQ’s stakeholders suggested transparency would be improved by opening up the market,” Cook adds. “We feel the adjustments to the trading model strike a better balance between access and the additional liquidity that market makers offer. The uptick in activity since the changes were implemented bears this out.”