Support TMX Group's Petition Advocating for Fair Markets

TMX Group is committed to fostering a fair, transparent, and thriving capital markets environment for all Toronto Stock Exchange (TSX) and TSX Venture Exchange (TSXV) listed issuers. We've carefully considered issuer and investor feedback regarding the urgent need to restore confidence in the trading and liquidity of small-to-mid-cap issuers. We write to reaffirm our commitment, provide an update on our continued advocacy efforts on your behalf, particularly concerning the critical issue of trading rules and policies, and, most importantly, we seek your crucial participation by submitting your comments directly to CIRO and signing our petition of support.

SIGN PETITION

In February 2025, we sent our TSX and TSXV issuers a letter communicating our ongoing efforts to address concerns regarding the Canadian trading environment. This letter informed you of our April 2024 submission to the Canadian Investment Regulatory Organization (CIRO) and Ontario and B.C. Securities Commissions, where we supported enhanced short selling rules and proposed enhanced failed trade reporting requirements and/or the introduction of mandatory buy-in requirements. Our conviction remains steadfast: these measures are essential to mitigate potential abusive short-selling practices and to ensure a robust and equitable marketplace.

Progress on Mandatory Close-Out Requirements

As a result of these advocacy measures, in combination with the voices from many of our issuers, we were pleased to see CIRO's proposed amendments respecting mandatory close-out requirements, published for comments in January 2025. These amendments reflect a positive step towards a trading environment that better protects our issuers and more closely aligns with U.S. regulatory standards for mandatory close-outs of failed trades.

CIRO has specifically solicited comments on the most effective approach to introduce these mandatory close-out requirements, particularly to reduce persistent fail-to-deliver positions, and to establish clear expectations for trade settlement.

TMX Group responded to the request for comments in April 2025 and supported CIRO's proposal to implement mandatory close-out requirements in Canada, to better align Canadian market practices with global standards, deter abusive short-selling, and ultimately reduce failed trades, thereby increasing confidence in the Canadian capital markets.

Submissions from some market participants have called for additional analysis of the Canadian short-selling regime given the potential system and technology costs. We believe that TMX Group's response letter to CIRO raised considerations while balancing them with our unwavering support for our issuers and for the integrity of our markets.

Your Voice is Crucial

Our commitment to advocating for the interests of our issuers and driving positive change within the Canadian capital markets is absolute. To amplify our collective voice and ensure your concerns are unequivocally heard, we urge you to participate in this vital process.

Although comment submissions closed April 10, we strongly encourage you to submit your comments directly to CIRO via their official channel. Additionally, we invite you to sign our petition of support, which TMX Group will formally submit to CIRO to underscore the unified stance of our issuer base. Your individual responses and our submission could be critical in determining CIRO's next steps.

SIGN PETITION

Your engagement is paramount to achieving meaningful reform and strengthening the Canadian capital markets for all participants.