Toronto Stock Exchange to Implement 25% Dilution Threshold for Public Company

    -   Public company acquisitions with 25% or more dilution of issued and
        outstanding securities will require security holder approval

    -   Rule amendment comes into effect November 24, 2009

TORONTO, Sept. 25 /CNW/ - Toronto Stock Exchange ("TSX"), a member of TMX Group (TSX: X), today announced that it has received approval from the Ontario Securities Commission ("OSC") for changes to its rules governing public company acquisitions. Effective November 24, 2009 (60 days from today), TSX listed issuers will be required to obtain security holder approval for public company acquisitions that will result in the issuance of 25% or more of their issued and outstanding securities (on a non-diluted basis).

"Toronto Stock Exchange provides a high quality market that balances the costs and benefits of regulation and governance for companies of all sizes. We are focused on expanding the size and reach of Canada's capital markets, and are putting in place the right measures to maintain the confidence of investors," said Kevan Cowan, President, TSX Markets and Group Head of Equities. "Today's announcement is in line with many of the world's major exchanges and provides us with an even stronger platform as we work to attract new investors and capital to Toronto Stock Exchange and to Canada."

This rule amendment was the result of an extensive public consultation process and careful analysis of global trends and best practices. Submissions were received in the spring of 2009 from various stakeholder groups. Commenters were near unanimous in their views and called for security holder approval of public company acquisitions resulting in dilution exceeding a threshold at or below 25%. TSX submitted the rule amendment to the OSC, which formally reviewed the submission in mid-September and will publish its approval in its weekly bulletin today.

The Notice of Approval is posted

    About TMX Group (TSX-X)

TMX Group's key subsidiaries operate cash and derivative markets for multiple asset classes including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, Montreal Exchange, Natural Gas Exchange, Boston Options Exchange (BOX), Shorcan, Equicom and other TMX Group companies provide trading markets, clearing facilities, data products and other services to the global financial community. TMX Group is headquartered in Toronto with offices in Montreal, Calgary and Vancouver. For more information about TMX Group, visit our website at


For further information: For further information: Carolyn Quick, Director, Corporate Communications, TMX Group, (416) 947-4597,

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