Pure slips to fifth; juniors drown in regulatory fees
2013-04-24 17:33 ET - Street Wire
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by Stockwatch Business Reporter
Alternative trading systems captured 33.7 per cent of Canadian trading volume last week, ended April 19, 2013. Alpha Trading Systems handled an average of 131 million shares a day, or 15.9 per cent of volume. Chi-X Canada handled an average of 94 million shares a day, or 11.4 per cent. Dark pool Match Now moved up to third place with 15.9 million shares a day or 1.9 per cent. TMX Select followed with 14.7 million shares a day or 1.7 per cent. Then came Pure Trading with 11 million shares a day or 1.34 per cent, and Omega ATS with 10.7 million shares or 1.3 per cent. The Toronto Stock Exchange and the TSX Venture Exchange continued to dominate the business with 66.3 per cent of the trading.
Of stocks listed only on the TSX, the exchange captured 60.9 per cent of volume. Alpha handled 17.6 per cent and Chi-X handled 13.3 per cent.
This week the TSX-V held two "Town Hall" meetings, one in Vancouver at Robson Square on Monday, the other in Calgary on Tuesday. The TSX-V said it called the meetings to discuss current market conditions, which are unfamiliar to some of its customers. Panelists in Vancouver included Kevan Cowan of the TMX Group, Rick Rule of Sprott Global Resource Investments and Gordon Keep of Fiore Financial. The meeting in Vancouver verged on the rowdy as attendees complained loudly about high regulatory fees imposed on public companies. This was not the discussion the exchange had in mind, but the attendees were intent on giving it a piece of their mind, and did so.
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The TSX Venture brings back memories of the old Montreal Stock Exchange...once a thriving hub of action - and then the regulators stepped in and over-regulated it. All over now and the Venture is heading down the same path. The problem is (of course) over-regulation...but there is also the matter of the glut of zombie companies that need to be purged, and perhaps a long hard look at the 'lifestyle' companies squandering shareholder money for lavish offices and paying their directors. The whole thing about directors being paid for receiving cheap stock, options, expenses, etc needs to be reviewed.
Posted by Da Crusader at 2013-04-25 09:40
If you are a typical small junior paying $200K for an info circular its time to change law firms. There is no doubt regulatory compliance costs have gotten ridiculous though
Posted by BS at 2013-04-25 13:04
This is the time of year Companies are filing the Management Info Circulars. You can read what they are paying their executives. I read a few from company's I own and am disgusted to see $15m mkt cap companys paying $500k salarys and director fee's.
Its not all the exchanges fault. The trend of Exec Officers treating the treasurys as personal bank accounts continues to be rampant.
What can the exchange do? Limit the remuneration paid to TSX Venture listed Executives. I suggest a TSX V listed CEO shld be paid no more than $250k with a bonus topped at 50%. And no golden parachutes when fired.
So its not all the exchanges fault, Company's need to show some guidance, no first class flights, cut back on the 20 "resource shows" a year, and steak and wine "shareholder dinners" - time to treat the shareholders with some respect.
Posted by Du-rag at 2013-04-25 14:01
Yeah...let's all shed a tear for them. The prime purpose of most of these 'so-called' juniors is to feather the nests of their principals by picking the pockets of the unwary, yet they're not shy about squealing when they're relieved of a little of that cash that they never worked for anyway!
Whether the 'fees' are excessive is moot...that's not what's killin' them.
Anyone who knows the VSE's history for the last 50 years knows that it's been a haven for skullduggery. They've relentlessly not only bitten the hand that's fed them....they've literally chewed it off. Regulatory oversight has amounted to little more than a hand over one eye and a drink glass over the other.
Now they're competing with too many other convenient gambling venues that are quite simply sucking vast sums out of the suckers on a daily, weekly, regular basis. There's only so much fast and loose cash to go around. The old inveterate market 'players' are either dying off or completely burned out...they've been ''had'' too many times. There are not enough players left to make the game work, and the majority of new kids aren't in the least interested....the penny markets are total unknowns to most....and those who've ventured in have found it has all the charm of an 'STD' but with far greater risks.
The brokers were ''generously''given the compelling advantage of the marvellous #1 designator which they've used to kill any and all challengers....they've shorted mercilessly...they viewed the Venture as their personal fiefdom to destroy any and all players with little but their own insatiable desire to steal a nickel at the forefront. All that's left now is for them to feed off each other in some sort of cannabalistic fashion. The retail players have evaporated...new cash is almost impossible to raise.. the small fry companies are dying... many of the brokers will be left to struggle....and I believe there's an argument to be made that, as was so eloquently pointed out, The 'Venture Exchange' is likely doomed.
As we are learning so well these days....our desire for immediate financial gratification and boundless greed comes with a price...so if they're looking for a culprit might I suggest they spend the last of the treasury money on a mirror and a crying towel!!
They all deserve what's so rightly come their way !!
Posted by Viola's Ghost at 2013-04-25 14:42
"... cut back on the 20 "resource shows" a year, and steak and wine "shareholder dinners" - time to treat the shareholders with some respect."
AGREED! My favorite gold company prides itself on modest offices, attending only one main show a year, but no booth. No wine, no steaks and their Xmas office party is straight out of President's Choice and (cheap) BC wines. Zero promo as all of the monies raised is spent in the ground. They were once mocked as 'pikers' but are now the standard of what a well run company looks like. As to paid directors...you MUST be kidding!
Posted by Phatter Dean at 2013-04-25 15:59
what about all these regulators making 200,000 plus per year. The rule book is now 20 inches thick. To do a 100,000 work program you need to raise 1 milion to achieve it 900,000 goes to feed all the bull shit in the industry and it is all regulations.
Posted by burnt shareholder at 2013-04-26 01:48
otcbb is where it is at...soon to be the venture capital exchange I think
Posted by things change at 2013-04-26 07:17
The OTCBB is yesterday's story. Look for more companies to list on Hong Kong. Kind of expensive on the way in, but after that....it is an exchange that realizes the importance of companies being free to operate. As far as the Venture goes, it will either change or it will fade into obscurity. And do not forget the vicious and usury fees being charged by the auditors. That must come to an end.
Posted by Poopsie Cola at 2013-04-26 08:55
What about all the ways the TSXV can extract fees from a company? Why does a company have to pay more than a nominal administration fee to do a financing? The fact is that the Management and Directors do the work, and the TSXV takes a serious cut. At the Vancouver Town Hall a participant quoted the fees to the exchange on a 10 million share 19 cent trade ($1.9m). $9500 was charged to the client, $6500 went to the TSXV. When the client is doing all the work, why does the TSXV take 2/3 of the fees? TSXV should be non-profit. Business in Canada would blossom.
Posted by Tycoon at 2013-05-01 12:57
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