Improving filing procedures and addressing concerns around short-selling rules are among the changes necessary to revitalize the TSX Venture Exchange (TSXV), according to feedback that the exchange has received from stakeholders.
In a report released on Wednesday, the TSXV highlights the progress it has made on its efforts to revitalize and grow the venture market, which has been facing dwindling financing and trading activity.
The report highlights the findings of a series of town hall meetings held on the revitalization initiative earlier this year. More than 1,000 clients and stakeholders took part in the meetings to offer feedback on the exchange’s December 2015 white paper, which outlined its planned measures for reviving the TSXV.
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Based on this feedback, the TSXV has made some adjustments to its plan. Specifically, it says that the consultations suggest that improving filing procedures should be a key component of the revitalization plan.
As a result, the TSXV said it will examine its filing procedures with the help of process efficiency experts, with a goal of improving the client experience. Those efforts are expected to result in client savings in both time and money, according to the progress report.
The TSXV says it also plans to address concerns related to market structure and short-selling rules. When asked whether short selling has a negative impact on the market, 57% of participants consulted said yes, according to the progress report.
Market structure and short-selling rules were not among the initiatives outlined in the white paper as they are not within the exchange’s scope and authority. However, the TSXV says that based on the feedback it received, it will commit to working with regulators and the trading community to influence discussions in these areas.
Certain other issues raised at the town halls, however, will not be acted upon. For example, some stakeholders suggested that the TSXV should be aggressively delisting companies that have had a challenging time in this market cycle. The exchange says it “seriously considered” whether such action would be in the best interest of the market at large, but concluded that it would be “inadvisable.”
The TSXV adds that it will continue to monitor listed companies to ensure they meet continued listing requirements; and in cases in which a company does not meet the requirements, the TSXV will work with the listed company on an appropriate course of action.
Overall, the TSXV is making “daily progress” on the revitalization project, in which its ultimate goals are to reduce client costs, expand the base of investors and financing companies, and diversify and grow the stock list, the report states.
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