Canadian stock exchange operator tries to clear air on cannabis stance

Canada’s cannabis industry and investors looking for clarity from TMX Group over its stance on MJ companies with U.S. assets will have to keep waiting.

TMX said in a news release Thursday it’s holding talks with Canada’s provincial and territorial securities regulators over the clearing of securities of issuers with marijuana-related activities in the United States. TMX operates the Toronto Stock Exchange and the TSX Venture Exchange.

“This is a complex matter,” TMX said in the two-paragraph statement.

A cloud has been hanging over the industry since various news outlets reported that the Canadian Depository for Securities (CDS) – a clearinghouse owned by TMX – was mulling whether to refuse to settle trades involving a handful of MJ firms with U.S. holdings.

In its recent release, TMX said “there is no CDS ban” on such trades, “despite media reports.”

News outlets, however, reported a ban was being considered by CDS – not that one had been imposed.

TMX’s release didn’t address whether an outright ban is still on the table, nor did it offer a timeline for when clarity could be expected.

Meanwhile, industry officials are increasingly frustrated over the uncertainty.

Daily News | Briefs | Canada Marijuana News | Legal & Regulatory News for Marijuana Businesses

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