TMX Group Clarifies CDS Position On Issuers With U.S. Marijuana-Related Activities

A recent press release from TMX Group announced that The Canadian Depository for Securities Limited (CDS) is working with Canadian securities regulators and stock exchanges to craft a solution to clarify the treatment of public companies with marijuana-related activities in the U.S. In the meantime, CDS will defer to the rules of each stock exchange in determining whether to clear securities connected to public companies with marijuana interests south of the Canadian border.

CDS is Canada's equities and fixed income clearing house and is currently the only platform to process trades in Canada. CDS is owned and operated by TMX Group. There has been a concern that CDS would follow the lead of the TSX and TSXV, both TMX Group exchanges, and impose a ban on clearing securities for affected companies. These concerns have been temporarily put to rest with the TMX Group announcement.