Thank you to everyone who attended the second CEO Cocktail event at Coast Restaurant in Vancouver on February 19th. The event turned out to be a smashing success! Thank you to Bacchus Law for lead sponsoring the soiree and organizing everything. Please see if you made the photo gallery below and we look forward to seeing you at the next event!
CSE was thrilled to host it’s network of supporters from the professional community on February 18th at the Pan Pacific in Vancouver. This was the first leg in a series of events across Canada celebrating the new CSE branding and to extend a big THANK-YOU to everyone who has supported the exchange over the past decade.
A good time was had, including a rousing speech from CSE CEO Richard Carleton who presented a very exciting road map for the exchange over the coming months. Select pictures from the event are available in the gallery below:
Here is the first ad in a series of commercials we are running on BNN:
And the second, featuring Rory Armes, CEO of Gener8 Media Corp. (CSE:GNR):
Richard Carleton, CEO of CSE – Canadian Securities Exchange recently spoke with Proactive Investors and discussed the recent rebranding from CNSX to CSE, the advantages of listing on the exchange, and touched on the specific reasons why Ned Goodman and Tom Caldwell are active investors in the company.
CSE Chairman Thomas Caldwell went One-on-One with Andrew McCreath on his weekly BNN program to discuss regulation and the markets and most pressingly addressed the question: Is too much regulation hurting the securities industry?
Tom, a vocal advocate of improving securities regulation in Canada, lent his thoughts on the current state of “over regulation” in the Canadian securities industry, exemplified by his early comments in the interview :
“I think we’ve reached a tipping point where the volume, the mass of regulation is so great – and a lot of it is not substantive in protecting investors – but the volume is representing a massive cost, not only to independent brokerage firms, but also to companies raising money – ergo it’s impacting the economy.”
Tom then touches on the spiralling growth of regulation as illustrated by this point:
“Take a look at the Ontario Securities Act – a year ago it was 2800 pages, this year it’s 3500 pages. it’s been expanding at 20% a year.”
One issue he is particularly concerned about is the upcoming Client Relationship Model, which could have dire consequences on transactional brokers that invest in junior companies:
“Brokers will no longer recommend junior or new companies to investors. The risk is too high for the broker – it’s going to hurt that industry big time.”
From a securities firm perspective, the increasing growth of regulation is making the business model of running a brokerage unsustainable:
“The costs of regulation are now the killer… typically one third to one half of all your administrative costs relate to regulation, that is an unsustainable business model.”
Ultimately, Tom offers his thesis on where the industry needs to look to improve, for the betterment of the economy:
“I think we should take a look at securities regulation and see how we can make it better – better being simpler… because in securities regulation less is more, simpler is better. Because it is easier to police and it is easier to focus on from the broker to comply.”
Not dismissing the importance of regulation (it is very important), Tom makes the telling statement about how growth in regulation can be misinterpreted as a positive by saying:
“Sarbanes-Oxley never saved one investor one dollar!”
The second portion of Tom’s interview focuses on his market outlook.
Some quick insights from the second portion of his interview with Andrew:
- A self-identified “incurable optimist”, Tom is still positive on the markets – both in Canada and the US.
- He still sees value in some stocks that others might not including Barrick Gold, bought as a turnaround last year (he’s a self-professed “garbage man”), and US Banks including Citibank, Morgan Stanley, and Bank of America – who have tremendous earning power when the economy improves. He believes they will become substantial dividend payers again as they gradually reacquire stock.
- Likes Canadian banks as an investor but not as competitor.
- Inflation will be back and it makes sense to own stuff rather then be a lender in this type of environment.
- Tom discusses Urbana Corporation (CSE:URB) and thinks there is a great model with closed-end funds as they are cheaper to run than a mutual fund. He attests that a lot of fortunes were made in these vehicles 60 years ago.
Proactive Investors recently profiled one of CSE’s newest listings – Urbana Corporation – a closed-end investment company (CSE:URB and CSE:URB.A). The company’s Chairman, Thomas Caldwell is also the Chairman of CSE – Canadian Securities Exchange. In the article much is discussed around the reasons for co-listing URB shares on CSE. Other highlights from the article include:
- Tom’s concerns about over-regulation in the Canadian capital markets and how it’s curbing innovation (you can read Tom’s op-ed about over regulation here);
- A clear explanation of how the CSE listing model works and how it focuses on regular monthly disclosure from issuers in favour of exchange merit reviews from the exchange;
- Prospects for the closed-end investment fund model that Urbana utilizes – predicting this will be a more popular vehicle as mutual funds lose their appeal;
- Some insight into Urbana’s investment philosophy and the unique things the fund can do due to it’s size.
CSE recently consolidated its trading venues (CNSX and Pure) for the CSE rebranding. You can read about this “Project One” initiative here.
This initiative introduces efficiencies and cost savings for our clients and most importantly, for the dealers that connect to our marketplace.
To clarify – CSE now trades both CSE-listed securities (like Gener8, CSE:GNR) as well as other Canadian listed securities all on one platform. Please note that CSE-listed securities do have slightly different trading hours in comparison to other Canadian securities trading on CSE. Here is a breakdown:
CSE listed market (formerly CNSX):
Hours are from 9:30-4pm. Pre-open is 7am. No after-hours trading.
CSE other listed market (formerly PURE):
Hours are from 8-5pm. Pre-open is at 7am. No after-hours trading.
Consequently, the CSE is Canada’s busiest venue for trading after 8am and is the preferred destination for early morning trading activity.
Bird. Meet worm.
Richard talks to Shelly Kraft and provides an overview of the exchange, its unique listing model, and touches on the topic of US retail market access to CSE.
In fact, CSE is the only Canadian exchange to offer real time data on Google Finance. Other exchanges that supply real time data to Google include Nasdaq, the NYSE, the London Stock Exchange and Euronext.
Visit Google Finance today and start researching your favourite CSE stocks using real time data!