The Toronto Stocks Exchange
Another example of older not being better, the TSE is one of the oldest in North America but also one of the smallest. It is the largest stocks exchange in Canada owned and operated by the TMX Group. Until 2001, the Toronto Stocks Exchange (TSX) was known as (TSE). Traditionally, stocks exchanges in Canada have often attracted a large number of financial and natural resources companies. The Toronto Stocks Exchange is currently the third-largest exchange in North America after the New York Stocks Exchange (NYSE) and NASDAQ in terms of market capitalization. It is the largest stocks exchange globally in terms of the number of listed securities. Among the instruments traded at the Toronto Stocks Exchange include; companies` shares, exchange-traded funds and investment trusts. The exchange also trades bonds, futures, commodities, derivative products and commodities. All the transaction at the exchange are denominated in Canadian dollar. Some of the major corporations listed at the Toronto Stocks Exchange are Suncor Energy which is the largest energy company in Canada, Royal Bank of Canada which is the 12th largest bank in the world and Canadian National Railway. At the Toronto Exchange, the exchange has a laid out structure that shows the difference between securities lending which is basically the loan of a security at the rate inferred by two parties. The securities lending arrangement is well outlined under the Securities lending in Canada legal, regulatory & tax principles. For example, an ETF dividend that equals payment made by a Canadian to a foreign lender can be considered an income from Canadian sources subject to a tax rate of 25% at the Toronto exchange.