History of the Toronto Exchange
A great deal of the capital during the early growth in Canada was raised from the London market, till the middle of 1800. There were public shares of big enterprises of that time like the Hudson’s Bay Company in Great Britain. However after the mid 1800s, with the increase in the availability of financial instruments like mining stocks and railway bonds, there was an augment in the number of financial brokers. The formation of TSX or the Toronto Stock Exchange is traced to July 26, 1852. A group of businessmen in Toronto got together with the objective to form a brokers association. Here we have mentioned how this exchange transformed into the biggest Canadian stock exchange and the 7th biggest in the world as of 2008.
The Early Period
Even though we can trace the TSX back to 1852, it is difficult to find records of any of the trading believed to have been done then. In fact TSX was really started in 1861 October when 24 businessmen gathered at the Toronto’s Masonic Hall passed a resolution with the aim of setting up a structure to assist in financial instruments exchange. There were just 18 securities, mostly from the real estate and banks that were listed in those days. There was limited trading with half-hour sessions daily during which just a few transactions were made. Initially membership cost $5, but this has increased to $250 per seat by 1871. At this time there were 14 member companies in TSX. The exchange was officially incorporated in 1878 by the Act of the Ontario Legislature and was the second authorized Canadian stock exchange after the Montreal Exchange.
2001 till Present
The TSX acquired the Canadian Venture Exchange in 2001 and was called TSX Venture Exchange later. Standard & Poor’s took over TSX 300 Composite Index management in 2002, and renamed it S&P/TSX Composite Index. Later in April of the same year, the Toronto Stock Exchange was again named TSX. For the first time in 2005 the total value of trade on the TSX was more than $1 trillion for the year and later in 2007, Montreal Exchange and the TSX Group made an agreement to merge and form the TMX Group. This business partnership of the two companies was completed in 2008, with the name change of the TSX Group as TMX Group
There are over 4,000 listed companies in the TMX Group and in terms of public listed companies it ranks second in the world in August 2008. The exchange raised C$58.8 billion via 465 financings and was world’s no.7 in 2007 for raising equity capital. The TMX no doubt is among the liveliest world markets for energy and mining instruments and the leading amount of listed mining enterprises were seen here in 2008. 35% of the sum of equity capital raised for mining corporations around the world were TSX and TSX Venture issuers in 2007.