TMX Group, the operator of the Toronto Stock Exchange, is engaged in discussions with Canadian securities regulators over a possible rule change that would permit all public companies to issue earnings reports on a semi-annual basis rather than every quarter. The push expands a regulatory proposal that, until now, has focused on exempting smaller firms from quarterly reporting.
The Canadian Securities Administrators - the umbrella body for provincial and territorial securities regulators in Canada - published a proposal late last year that would let smaller issuers, generally those with annual revenues below $10 million, replace quarterly reports with semi-annual filings. TMX's chief executive, John McKenzie, told attendees on the sidelines of the Futures Industry Association's annual conference in Florida that his organization has urged regulators to broaden the scope so that larger publicly listed companies would also have the option.
"We have recommended that (CSA) should actually take it all the way, and we should actually consider making it optional for all public companies," McKenzie said. "Then the companies will decide with their shareholders. If the shareholders need more information, they will tell them or they won’t provide capital." His comment frames TMX's stance as a preference for optionality, putting the decision in the hands of issuers and their investor bases.
TMX's advocacy comes as Canadian policymakers and market participants seek to revive a domestic initial public offering market that has contracted over time as listings have fallen through delistings and takeovers. To encourage more companies to seek public capital, Canada has recently reduced tax burdens for smaller enterprises and eased certain financial disclosure requirements for firms pursuing listings, measures intended to make the public markets more accessible.
The push to relax reporting frequency in Canada tracks a similar initiative in the United States. U.S. President Donald Trump publicly said last year that companies should be able to eliminate quarterly reporting in favor of a semi-annual cadence, and the U.S. Securities and Exchange Commission has identified the idea as a regulatory priority. McKenzie noted that, if momentum builds in the United States, Canadian regulators have indicated they may move quickly to follow, saying that there could be "zero lag time" between U.S. action and Canadian implementation.
Executives and regulators in other regions already allow less frequent reporting. Companies across parts of Europe and Asia, as well as Australia, have been issuing semi-annual earnings statements for years, a fact McKenzie cited in support of making the option broadly available to Canadian issuers.
IPO hopes and mining resurgence
TMX is also banking on a revival in initial public offering activity in Canada this year, driven in part by a rebound in mining sector listings. McKenzie said the exchange expects mining issuance to help offset volatility from geopolitical events such as the war in Iran and sector-specific selloffs in software stocks. He suggested the exchange is positioned to reassert itself as a leading global hub for mining listings after recent momentum in the sector.
Several companies have signaled intentions to access public markets this year, including AGT Food and Ingredients and drugmaker Apotex. The mining resurgence has been attributed by TMX to increased global demand for critical minerals over the past year, a dynamic McKenzie said is creating opportunities for prospectors and developers.
Roughly 1,100 mining companies currently trade on Canadian exchanges, a concentration that TMX describes as a foundation for renewed listing activity. McKenzie said that policies in the United States aimed at onshoring or forming mineral partnerships to counter competition from China are contributing to increased opportunities for mining development - a trend he characterized as "very pro-mining" in its economic implications for prospectors and developers.
What TMX is asking regulators
At the core of TMX's proposal is a call for optionality: allow any public company to choose semi-annual reporting if it and its shareholders prefer that cadence. TMX's position is that market participants and capital providers, not regulators alone, should determine the appropriate frequency of financial reporting for a given issuer.
That stance aligns with other Canadian efforts to bolster listings, such as tax relief and lighter disclosure burdens for smaller firms, which are intended to lower barriers to public capital. McKenzie's comments indicate TMX sees regulatory flexibility on reporting frequency as another lever to make the public markets more attractive to issuers.
Quotes and context provided by TMX
"We have recommended that (CSA) should actually take it all the way, and we should actually consider making it optional for all public companies," McKenzie said. "Then the companies will decide with their shareholders. If the shareholders need more information, they will tell them or they won’t provide capital."
McKenzie also noted that the exchange expects mining listings to strengthen IPO activity during the year, and cited broader policy moves in North America that are creating incentives for mineral development and related market opportunities.
Limitations of available information
The discussions described by TMX and the regulators are ongoing. The CSA's proposal as published last year specifically targeted smaller issuers with typical revenues under $10 million; TMX's recommendation is to extend optional semi-annual reporting to larger issuers as well. Beyond the statements reported here, no additional timelines, regulatory texts or implementation dates were provided in the material made available by TMX at the conference.