CSC Chapter 2: The Capital Market

Canadian Unlisted Board

The Ontario web-based system to which the trades of unlisted securities are reported.

primary market

The market where newly issued securities are sold by companies and governments to investors.

alternative trading system

Privately-owned computerized networks that match orders for securities outside of recognized exchange facilities. Also referred to as Proprietary Electronic Trading Systems (PETS).

Montréal Exchange

An exchange that deals exclusively with non-agricultural options and futures in Canada.

auction market

Market in which securities are bought and sold by brokers acting as agents for their clients.

Toronto Stock Exchange

The largest stock exchange in Canada with over 1,700 companies listed on the exchange.

stock exchange

An auction market where byers and sellers of securities meet to trade based on the laws of supply and demand.

investment advisor

An individual licensed to transact in the full range of securities. The term refers to employees of CIRO member firms only. Also known as a Registrant or Registered Representative (RR).

common share

Securities representing ownership in a company. They carry voting privileges and are entitled to the receipt of dividends, if declared.

bid price

The highest price a buyer is willing to pay for the financial instrument being quoted.

institutional investor

Organizations, such as pension and mutual fund companies, that trade in large-share quantities or dollar amounts.

dealer market

Also referred to as the unlisted market. Securities are bought and sold over-the-counter with dealers acting as principals when buying and selling securities for clients.

ask price

The lowest price a seller will accept for the financial instrument being quoted.

money market

That part of the capital market in which short-term financial obligations are bought and sold.

liquidity

The ability of the market for a particular security to absorb a reasonable amount of buying or selling at reasonable price changes.

secondary market

The market where investors trade securities that have already been issued.

bid-ask spread

The difference between the bid price and ask price.

TSX Venture Exchange

Canada’s public venture marketplace, the result of the merger of the Vancouver and Alberta Stock Exchanges in 1999.

TSX Alpha Exchange

offers trading in securities listed on the TSX and the TSX Venture Exchange.

ICE NGX Canada

provides electronic trading, central counterparty clearing, and data services to the North American natural gas and electricity markets.

Canadian Securities Exchange

lists equities of emerging companies.

Cboe Canada

an exchange that provides listing services and facilitates trading in public companies, exchangetraded funds, Canadian Depositary Receipts™, special purpose acquisition companies, and closed-end funds.

CanDeal

offers institutional investors access to government securities and money market instruments.

CBID

an ATS that operates two distinct fixed-income marketplaces: retail and institutional. The retail fixed-income marketplace is accessible by registered dealers on behalf of retail clients. The institutional fixed-income marketplace is accessible by registered dealers, institutional investors, governments, and pension funds.

MarketAxess

provides market data and a trading platform with access to multi-dealer competitive pricing for a wide range of corporate bonds and other types of fixed-income instruments.

CanPX

combines digital feeds from participating dealers to provide a composite display of real-time bid and offer quotations, in price and yield terms and with volume information. The service covers Government of Canada bonds and Treasury bills.