"This exemption expands opportunities for U.S. investors by giving them access to qualifying Canadian companies," said NASAA President Joseph Borg.
The TSX and IDA believe this weekend's decision is a major step forward for the Canadian capital markets and their profile south of the border. This decision recognizes the substantial comparability of secondary market securities regulation and oversight on the TSX with U.S. counterparts like the New York Stock Exchange and NASDAQ.
"The NASAA decision is a vote of confidence in the Canadian regulatory system and will reduce burdens on our Member firms with U.S. clients and operations. This in turn will benefit Canadian capital formation," said Joe Oliver, President and CEO of the Investment Dealers Association of Canada.
"The TSX is delighted to have been recognized by NASAA in this manner and to see U.S. investors gain greater access to Canadian issues," said Barbara Stymiest, CEO of TSX Group. "This represents another in TSX Markets' series of initiatives to bring greater liquidity and foreign order flow to the TSX, ensuring that we remain better, cheaper and faster than the competition. It's also an example of how we are continually working to add to the value of a TSX listing. "
Most U.S state securities commissions currently prohibit residents from secondary trading of stocks which are not listed on a U.S. exchange unless they have been individually registered or an exemption from registration requirements on a state-by-state basis is available. The model, which must be adopted by each state individually, will provide individual state commissions with a means to quickly provide a secondary trading exemption for TSX listed companies from this requirement. Since most major US states have a good understanding of the Canadian regulatory system from IDA efforts to obtain RRSP relief, this will facilitate the exemption process.
TSX are the initials attached to the core businesses of the TSX group of companies. The TSX group of companies collectively manages all aspects of Canada's senior and junior capital markets, and are Canadian leaders in a global industry, offering clients quality products and always striving to exceed their expectations. The TSX group of companies is headquartered in Toronto and maintains division offices in Montreal, Winnipeg, Calgary and Vancouver.
The Investment Dealers Association of Canada is the national self-regulatory organization and representative of the securities industry. The Association's role is to foster fair, efficient and competitive capital markets by encouraging participation in the savings and investment process and by ensuring the integrity of the marketplace.
