TSX Composite Index

About TSX (Toronto Stock Exchange)

TSX, Toronto Stock Exchange, TSE, TMX, TSX Group, TMX Group, Exchange, Stock Exchange, CDNX, Canadian Venture Exchange, TSX Venture Exchange

The major investment projects during the first few centuries of Canada's European settlement were borrowed primarily from London's capital market. In the beginning, the public shares of large corporations, such as the Grand Trunk Railway, Hudson's Bay Company, and the Bank of British North America, were held in Great Britain. In the mid-19th century, when a Canadian government, a Canadian railway, Canadian banks and Canadian mining stocks and bonds started to become established, financial brokers began to appear in Canada.

The Toronto Stock Exchange was likely created by the Association of Brokers (a group of Toronto businessmen) on July 26, 1852. However, no official records of the group's transactions have survived. Then, on October 25, 1861, at the Masonic Hall, twenty-four business men officially created the Toronto Stock Exchange. The main objective of these businessmen was to establish communications among members to facilitate the exchange of stocks, shares, bonds, mortgages, and other loans.

At that time, in 1861, fewer than two dozen public companies were listed on the Toronto Stock Exchange (called TSE, but not to be confused with the current abbreviation for the Tokyo Stock Exchange). There was only half an hour of trading per day and only two or three transactions. Most of the listed companies were related to banks and real estate.

Sixteen years later (in 1878), the exchange was formally incorporated by an act of the Legislative Assembly of Ontario. Trading become to grow slowly until the outbreak of the First World War when the exchange was shut down in 1914 for three months for fear of financial panic due to war in Europe. The war showed that the Canadian market could not rely on the British market to raise capital. So, the Canadian government raised billions of dollars by selling bonds to its own citizens and Americans on the New York bond market. World War I stimulated the development of Canadian industrialization. This generated a demand for capital. As a result, the volume of shares traded on the TSE had grown to more than 10 million a year by the late 1920s.

As in the USA, the value of stocks fell significantly during the Great Depression of the 1930s. In order to survive the economic crisis, the Toronto Stock Exchange and the Toronto Stock and Mining Exchange (TSME) were merged. The merged markets chose to keep the Toronto Stock Exchange name. Because of this merger, the TSE ranked third among North America's largest exchanges in 1936. Since then, the TSE's trading volume and listings of public companies have continued to grow, although there have been a few sharp declines, such as those that occurred during the global stock market panic of October 1987, 2000-2003 and 2007-2008.

In the 1970s, the Toronto Stock Exchange was the world's first exchange to develop a computerized trading system (introduced as CATS - Computer Assisted Trading System) for some less liquid stocks. In 1997, the TSE closed its trading floor completely in favor of electronic trading.

In competition with foreign exchanges, the TSE and the Montreal Exchange (ME) agreed in 1999 to move all trading of preferred stocks to the TSE and trading of derivatives to the ME. At the same time, the Vancouver Stock Exchange and the Alberta Stock Exchange merged to form the Canadian Venture Exchange (CDNX). Later, the Canadian Dealing Network, Winnipeg Stock Exchange, and equities portion of the Montreal Exchange merged with CDNX.

Two years later, in May 2001, the TSE acquired ownership of the Canadian Venture Exchange (CDNX) by creating the TSX Group. The TSE acronyms was renamed TSX. That put TSX and TSX Venture Exchange into first place in the world for listed oil and gas companies. In 2008, TSX Group Inc changed its name to TMX Group Inc.

The TSX stimulates the private sector's ability to create wealth and jobs, and provides a gateway to Canada for global investors. The S&P/TSX Composite, the main index of the Toronto Stock Exchange. The exchange's normal's trading session is from 9:30 am to 4:00 pm ET with a post-market session from 4:15 pm to 5:00 pm ET on all days of the week, except Saturdays. Sundays and holidays are declared by the Exchange in advance.

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