CSE Listed Securities Now Eligible for Margin
The Canadian Securities Exchange (CSE) announced last week that the Canadian Investment Regulatory Organization (CIRO) has designated the CSE as an “acceptable exchange” under its margin eligibility rule. This decision, applicable immediately to all CSE-listed securities, brings significant advantages to issuers, investors, and the investment industry as a whole.
Investment dealers now have the option to enable clients to hold CSE-listed securities in margin accounts, effectively increasing liquidity in these securities. This flexibility empowers investors with greater choices and strengthens the overall market ecosystem.
Margin eligibility also leads to reduced capital costs for investment dealers who hold CSE securities in their inventory. This decrease in costs, in turn, lowers the expenses associated with public offerings for issuers.
Additionally, the inclusion of CSE-listed securities in exchange-traded funds and other exchange-traded products is expected to undergo a decline in costs. This reduction opens doors for broader inclusion of CSE securities in various investment vehicles, fostering diversity and expanding market access for investors.
Furthermore, this change represents a step towards the introduction of single stock options on CSE securities that meet the requirements of price and liquidity eligibility. The implementation of single stock options is poised to further enhance liquidity and price discovery for the underlying securities, benefiting market participants and facilitating efficient trading.
CSE CEO Richard Carleton expressed his enthusiasm, stating, “This is a crucial milestone for CSE-listed issuers and their investors. Margin eligibility significantly enhances the appeal of a CSE listing, delivering reduced costs and increased liquidity to multiple stakeholders.”
Carleton emphasized that the recently granted margin eligibility for CSE securities enhances the exchange’s capacity to attract and retain high-quality issuers.
Information for this briefing was found via the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.