Nasdaq hopes to operate an exchange in Canada
New York-based Nasdaq Inc. said Thursday it has applied to operate an exchange in Canada, a move that could bring foreign competition to a market dominated by the TMX Group, operator of the Toronto Stock Exchange.
According to a posting on the Ontario Securities Commission website, Nasdaq Canada and its parent company, Ensoleillement Inc., have applied for recognition as exchanges in Canada, starting the clock on a 30-day comment period to close Nov. 13.
Nasdaq is not proposing to list issuers’ securities and, if it decides to do so later, the OSC said its listing rules would have to be reviewed, published for comment and presented to the commission for approval.
Chi-X Canada, an alternative trading system for the Toronto Stock Exchange, was purchased by Nasdaq in February 2016. Applying for an exchange licence was the next “logical step” for Nasdaq after completing technology migration to Chi-X, spokesman Joe Christinat said in an email.
He wouldn’t say when or if the company will start listing securities, but did say that it is talking to clients about their needs.