(This story has been updated with a statement from TMX Group.)
Two indices tracking the performance of cannabis companies on North America’s largest stock exchanges have launched in recent months, demonstrating a growing level of mainstream interest in the burgeoning industry.
The first to launch was the Standard & Poor’s/MX International Cannabis Index on Nov. 18, 2019.
The index measures the performance of cannabis firms trading on the Toronto Stock Exchange (TSX), TSX Venture Exchange (TSXV), New York Stock Exchange (NYSE) or Nasdaq, according to a notice by TMX Group, which owns and operates the TSX and TSXV.
“The cannabis market has become an area of increasing interest and relevance to investors in recent years.”
Eligibility to be added to the index requires companies to have a minimum market cap of $120 million and an average and median daily value traded of $400,000, according to the release.
The S&P/TSX Canadian Index Committee that maintains the index is comprised of four S&P Dow Jones Indices members and three TSX representatives.
More recently, the S&P/TSX Cannabis Index was launched on Jan. 20.
The index measures the performance of basket of cannabis companies on the TSX and the TSXV.
The TSX is responsible for compiling the list of eligible cannabis stocks from which the two indices are constructed.
Cannabis issuers on the Toronto Stock Exchange or TSX Venture Exchange with a market capitalization under 90 million Canadian dollars ($68 million) are not vetted for the index.
Issuers on the NYSE or Nasdaq with a market cap under $60 million are not vetted.
Both indices are managed by Standard & Poor’s, said Catherine Kee, senior manager of media relations at TMX Group, in an email.
The S&P/MX International Cannabis Index symbol is MCAN.
The S&P/TSX Cannabis Index symbol is XCAN.
The S&P/TSX Cannabis Index methodology is available here.
The S&P/MX International Cannabis Index methodology is available here.
Matt Lamers is Marijuana Business Daily’s international editor, based near Toronto. He can be reached at email@example.com.