Creating Canadian Champions: TMX Group’s Proposals to Supercharge Canadian Public Company Growth

Canada's capital markets ecosystem is a vital engine of opportunity for entrepreneurs and investors, driving economic growth for our nation. Over time, our unique, two-tiered public markets have built a strong track record of innovation and global leadership, while adapting to serve the needs of companies through each stage of their life cycle.

But in a hyper-competitive global marketplace, important challenges remain. And Canada must push to keep pace and maintain our competitive edge.

TMX is highly supportive of the federal government's stated objective of building a stronger, more resilient, more independent economy. We are proposing three steps the government can take now to ensure that the next generation of homegrown success stories is built, funded, and owned by Canadians.

TMX recommends the following measures to evolve our tax environment to boost competitiveness, unlock capital flows to Canadian companies, and incentivize domestic institutional investment to support growth-stage companies. These recommendations are aimed at supporting what we call CanCos: operating Canadian* public companies with a market capitalization under C$1.5 billion, and listed on a Canadian stock exchange.

* Incorporated and headquartered in Canada. Companies below the C$1.5B market capitalization threshold are generally excluded from major indices, which significantly limits their ability to attract institutional investors. This dynamic has become increasingly consequential as average issuer size across global markets has grown, raising the effective bar for index inclusion and institutional visibility.

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