TMX Group Inc. (Toronto Stock Exchange)

Exchange entity TMX Group Inc.
Conducts business in Canada
Number of listed companies (dec./16, WFE) 3,419
Domestic market capitalization (in Millions USD, dec./16, WFE) 2,041,534
Has signed the SSE Commitment Letter? No
Has prepared SSE Communication to Stakeholders? No
Requires ESG reporting as a listing rule? Yes;
  • If any environmental or social information is deemed ‘material’, it must be immediately disclosed by a news release as required by the Exchanges’ Timely Disclosure Policies and the issuer must file a material change report on SEDAR if the material information is a material change. In addition, securities rules require issuers to disclose all material information including material environmental and social issues. Source
Related information:
  • Canadian Environmental Protection Act (1999) requires companies to provide information on specific pollutant emissions for inclusion in the National Pollutant Release Inventory. The act was expanded five years later to include the GHG Emissions Reporting Program, which requires Canadian Large Emitters to report GHG emissions.  Banks and other financial institutions are  with equity of CDN$1 billion or more are also required (Ban Act, 1991) to publish an annual statement describing their contributions to the Canadian economy and society. Source
  • The Canadian Securities Administrators requires mining companies to report on reasonably available information on environmental, permitting, and social or community factors as it relates to mineral exploration, development, and production activities on a mineral property that is material to the issuer. TSX includes a reference to this its listing standards for mineral exploration and development stage mining companies. Source  Source
Offers written guidance on ESG reporting? Yes; Related information:
  • In 2010, the Canadian Securities Administrators issued CSA Staff Notice 51-333 Environmental Reporting Guidance to help issuers understand reporting requirements for environmental issues. It identifies where requirements exist, explores the concept of materiality and provides specific disclosure examples. While the notice did not specifically address social information, it has been noted that social issues are included since the Annual Information Form and Management's Discussion and Analysis cover all material issues. Source
Offers ESG related training? No
Provides sustainability-related indices? Yes;
Has green bond listings?  No
Additional Information
  • TMX Group has strategically targeted growth-oriented Clean Technology and Renewable Energy companies seeking a market to access North American and global capital. As of July 2014, TSX and TSX Venture Exchange were home to 120 of these companies with a total market cap of over C$26.7 billion. Source
  • The MCeX was a joint venture between the Montréal Exchange and the Chicago Climate Exchange® (CCX), North America’s only voluntary legally binding rules-based greenhouse gas emissions allowance trading system. The system proposed by the Canadian government is described as a “baseline and credit system”. This system was based on the allocation of units to a company for exceeding its intensity-based greenhouse gas (GHG) emissions reduction targets (one credit equals the right to emit one metric ton of carbon dioxide equivalent (CO2e). As of August 2014 MCeX was inactive. Source
  • TMX is also a member of the WFE Sustainability Working Group.
Organizational model of stock exchange
  • Listed company for profit; demutualized in 2000
Regulatory bodies
  • Ontario Securities Commission - Ontario
  • Investment Industry Regulatory Organization of Canada (IIROC) - Ontario
  • Autorité des marchés financiers - Quebec
Regulatory model
  • Independent Member Self-Regulatory Organization (SRO) Model The two major exchanges that the TMX Group operates are the TSX and the Montreal Exchange. Under Ontario securities rules, the Ontario Securities Commission gives oversight to all financial markets in the province. The TSX has self-regulatory abilities but delegates market surveillance and enforcement to the Investment Industry Regulatory Organization of Canada (IIROC); an independent organization. The TSX only has listing regulatory authority as a result of the delegated powers. This would warrant a 'Independent Member SRO Model' classification. The Montreal Exchange operates in Quebec, which is regulated by the Autorité des Marchés Financiers (AMF), an independent but government owned organization. The AMF assists the Montreal Exchange in developing rules and regulations and gives general oversight to the markets but the majority of the regulatory authority lies with the Montreal Exchange itself, making it a Strong Exchange SRO Model.
About the stock exchange
  • Location: Toronto, Canada TMX Group's businesses operate cash and derivative markets for multiple asset classes including equities, fixed income and energy. We also provide clearing facilities, data products and other services to the international financial community. Source
Ownership of Exchange (Shares >4% only) Share
National Bank of Canada 6.20%
TD Securities Inc. 6.20%
CIBC 6.20%