[music] I'm Charlotte Mloud with investingnews.com and here today with me are Anna Sarin, director listings development at the Canadian Securities Exchange and Eduardo Corona, business development at the National Stock Exchange of Australia. Thank you both for being here. Great to have you. >> Thank you for having us. Of course, we've got a lot to get into today. I think it's going to be an exciting conversation. I want to hone in on the CSC's recent acquisition of the NSX. So,


this closed back in October, but since you're both here together at VRC, it's a good chance for us to unpack what it means for companies and also, of course, for investors. So, I thought we could start with the basics. Eduardo, if you could explain what the NSX is for for people who aren't familiar. >> Yep. Fantastic. I think to begin talking about the NSX, you have to go back a little bit in history and where our roots began. Um, our roots date back to the 1800s with the Bindigo Stock


Exchange during the Gold Rush Australia. It then formed into the Newcastle stock exchange and then the National Stock Exchange of Australia, the NSX as we know it today in 2006. We've had a quite a rich history uh with a lot of precedent. Uh, for example, we actually might believe that we were the first stock exchange to tokenize real life assets when we tokenized vats of wine between 2001 and 2003. Uh, we also had a taxi license plate market uh until a pesky little company called Uber came


around. Uh, but more notably, and I think most importantly, and one of the reasons we're here today, uh, as you mentioned just briefly, the CSSE announced its acquisition back in May. It wrapped up in October and we've done a few things in place to prepare us uh for what that relationship will look like which we're excited for. Uh but one of the principal things we did uh right after the acquisition as well is what we went off and got the CSSE recognized in the eyes of ASICH the financial regulatory body


in Australia. Um what we're hoping to create and where we think the opportunity lays in Australia is creating the venture market a little bit like the CSC's done here. Um, we don't shy away to say we're a little bit more ambitious sometimes because uh there is no current venture market uh currently in Australia. So we want to be a bit of the TSXV and the CSE combined. Um so yeah quite a big opportunity there I think for Australia and I think the the big mantra uh we like to say and we


follow is that one size doesn't fit all. Uh, so it's a bit tough for companies with a market cap of 5 million doing mining in Perth to be, you know, under the same scrutiny as the Riotintos, the BHPs of this world with more caps in the billions. >> Right. Right. Great overview of the history and how this acquisition makes sense for the NSX and Anna, I'll ask you as well from the CSC perspective, why did you pursue this deal? >> We've been spending some time in Australia for quite a few years now. We


recognized uh several years ago that our issuers were ambitious to access the Australian markets. The Australian markets have a fantastic retail um investor sector. Um they have some great programs that allow for lots of uh liquidity within their marketplace and they love the mining space. So uh we found that a lot of our issuers were wanting to access Australia and they were really struggling to do so. Um and so we started building relationship with the national stock exchange of Australia. They have very similar


approach to policies, regulatory framework um and how they deal with their issuers and apply apply um their framework to them. So as we started working with them, there was an opportunity for us to acquire them and be able to impart uh our wisdom, our technology um and our expertise that's in our background uh to what they're trying to build. So, it's a very um it's a very exciting moment for us and it's offering our issuers an opportunity to access Australia in a way that they've


never been able to access. Um this is for issuers in any country. Um um and any exchange in Canada are able to access them now. >> Yeah, definitely. I can see the synergies and how the deal makes sense. And I want to get into the company side and the investor side, how this makes sense. So let's start with the companies and what this this deal allows companies in Canada as well as Australia. How does it improve their access to both of those markets? And maybe we continue with Anna and then we'll move over.


>> Sure. I think you know the one thing that uh from a global perspective I think Canada's really recognized as a safe jurisdiction for companies to go public in the growth sector. So wherever their asset is, whatever their operation is, going public in Canada is very recognized globally from an investor perspective. And so uh issuers that are listed in Canada are very wellliked in Australia. They love Canadian assets. They love Canadian public companies. And there actually is a lot more synergies


between our two regulatory frameworks than I think um any other jurisdiction. And so there are a lot of similarities that already exist making it easier for issuers uh to transpose what they're already doing from a disclosure perspective into the Australian uh framework. >> Well, and maybe we hear also from Eduardo on how it works in that vice versa type of way. >> Yeah, of course. I mean, I think the big interest I think what's attracting a lot of Canadian companies at the moment is


that's usually a bit of a pendulum between two capital markets in terms of valuations. I think a company spreading across itself across two capital markets makes its shares more resilient. You know, what's hot in one market might not be so hot in the other, but this way you're diversified a little bit and you're reaching to uh very well mining educated uh investor bases. With that said, right, we're very industry agnostic. Uh we're open to all, but just right now where it makes the most sense,


especially while we're here in Vick, uh it's to, you know, target those mining companies. Um, and I think a lot of the benefit of a company coming over to Australia and seeking that dual listing and vice versa as well, right, is I think two things. I think principally it opens it up to idea of 24-hour trading. Uh, spreading yourself across two markets that are quite widespread by distance and time as you may know. Uh, but also I think in Australia we've got something very valuable which is the the


superanuation system. So for those who don't know that is the pension system we have in Australia. um it's very well looked after and these superanuations right they've got almost investment banking sized offices and they're one of the few ones in the world that are still doing individual stock picking uh with certain mandates to invest a lot in the domestic market i.e. Australia. So that provides a pretty uh good opportunity for companies. >> And I think Eduardo to add to that,


that's probably why a lot of uh Australian investors like issuers to have a local marketplace, right? So the dual listing becomes even more relevant. >> That's exactly it. >> Yeah. >> Okay. So companies we can definitely see how the dual listing can benefit from for them. And let's look at the investor side as well. Of course, if they are dual listing, then we can see how investors have much easier access. But is there anything that you would add on the investor side that is beneficial to


know about? >> Yeah. Uh so I think for investors looking to the companies right it's again uh very mining educated markets. Uh so for the investors the more opportunity there right they've got uh the risk appetite because they're more used to these sort of companies especially with exploration companies basically coming out of Australia. Uh, so what that allows is for really big projects to to get ahead, right? And it's not just kept within the big mining conglomerates. >> Yeah, I think I do hear that Australian


investors really just kind of understand the mining sector maybe a little bit better than even people in Canada do. Yeah. Let's let's talk about the Canadian investor side as well because I do know that people want access to those Australian companies. So, can you talk a little bit more about that that demand? >> Absolutely. I think that we've seen some interest from Australian listed issuers to access Canada. The one thing that we have at the CSC is that we're a recognized foreign exchange with the


SEC. So, if you dual list with the CSC, then you get your OTC ticker and you have access to all of North America. Um, we are seeing some interest from the tech side out of Australia because it really does give them that North American opportunity. Um, as well as the mining sector as well. >> Yeah. Yeah. Good to point out the kind of that gateway into North America as a whole. I think that's really important and maybe that gives us a good road to talking about what what trends are you seeing in terms of company listings


across both of the exchanges. You mentioned there's interest on the tax side. Any any other trends that you're noticing develop? >> You know, I think the one thing that we I've really noticed as as we kind of take a look at the financings that are happening at the CSSE is that most of the ones that we're seeing are overs subscribed. Uh most are in the resource sector currently. We're seeing lots in life sciences as well and a lot of them are outside outside of Canadian borders.


So we're seeing that real importance and value on yes maybe being listed in Canada but accessing capital outside of our borders. >> And I'll ask the same about trends in listings on the NSX because I think that's a a pretty interesting topic. >> Yeah, absolutely. I think when we look at what the the near future and the future of the NSX looks like, we like to kind of put it into three buckets. Um, the first one, even though it wasn't the motivation for the acquisition, it's


definitely been a benefit and we're seeing a lot of interest from not just CSC, but TSXV and TSX companies wanting to do a list in Australia. So, we're engaging with quite a few in conversations like that and we're probably expecting that to come to fruition, you know, in the next year or two. Uh, someone will be the first, someone will be on the sidelines and watch the first go by and then jump in after. Um, the second one would be transfers from our competing exchange. We set up a program where it's quite


cost effective and time efficient to uh move over. Considering you're right, you're in the same jurisdiction, same local market. It should be quite easy to just get everything uh over since you have all your announcements and your reporting obligations done in place. And then the third one, which is also quite exciting, we like to call it the newer novel IPOs. Uh we're working with some kind of cryptobased um listings that would be the first of its kind in Australia. uh we're quite uh


proactive and we're engaging with ASICH, the local financial regulatory body uh and we're they're kind of like giving us the green light to get that listing ahead. Uh so we're putting hopefully the formal application in soon. Uh and if that you know we'd have product not available anywhere else in Australia, which would be a pretty good opportunity for the NSX. >> Yeah. Yeah, I can definitely see that. And I'll ask a little followup just on who who which kind of companies the NSX


is right for. I think for our audience, we understand because we're mostly focused on Canada and North America. They understand the difference difference between CSE and the TSX, TSXV, but NSX versus ASX, which companies would be would you want to see come to the NSX? >> Yeah, of course. I think look, in the long run, we're open to all sorts of companies, right? Um but right now I think what would it makes more sense for people where the the real value is and what we're what we're offering would be


younger uh entrepreneurial companies uh who are looking for kind of a listing rule set that suits them best. Uh we like to say we're a lighter touch listing rules which uh and not much interpretation is very straightforward and we believe that helps those younger companies. With that said and with the theme of the venture market that we're trying to create, right? I'll just kind of list through the listing requirements so you get an idea of what the companies and the barriers to entry are. Uh so we


have no minimum listing share price. We ask for a shareholder spread of 50, a free float of 25 but no assets test, no profits tests, and a minimum market cap of 500,000 AUD. Uh on top of that, we asked for two years um audited financials. Uh we're also um also accustomed to working with younger companies. So um if you're a company that hasn't run for two years, we'll look at the experience of the board and the seuite members um see if that experience is enough for us to waver maybe that to audit financials. But with


that said, it encompasses younger companies. There are barriers to entry and yeah, kind of going again with the theme of uh one list, one size does not fit all. Uh so offering a home for those who may be punished by that higher level of scrutiny. I think the one thing that we saw an alignment was was was that the NSX is maybe what the CSSE was, you know, 10 or 15 years ago and I think we come to it as a similar approach of being able to create really streamline um well understood uh policies and how


we're going to approach them. What we found is when we created that program in Canada is that the the growth the really growth centered issuers as they grew wanted to stay with us. So now we've become an exchange that's very diverse in our size and our sector and I think that's the real opportunity for NSX going forward as well. >> Oh yeah, absolutely right. And having you guys as our mentors, uh we hope to kind of repeat your your success here in Canada over in Australia and hopefully


on a on a more expediated timeline. >> Yeah, absolutely. >> Yeah. Yeah, I can definitely see how it all lines up. And good point on on the growth because of course I've seen that over the last years at the CSSE. So, you mentioned you you hope to see it move faster at the NSX. How many how many listings are there now? Do you have a target in mind for that or we'll we'll see how it goes? >> Yeah, look, always see how it goes. There's a lot of playing parts with many


things in life, but we've got around 50 listings at the moment. Um, I think of course a big round number. Everyone likes 100. So, if we could get to that in the next one or two years, that'd be absolutely awesome. Uh, but yeah, I'm ambitious to to do it all. We did a road show in late 2025 with our CEO Richard Carlton and the NSX CEO Max Cunningham. Um I was quite takenback by just how encouraging the marketplace was. Um so I think that there's a lot of we we spoke to a lot of um stakeholders within the


marketplace saying there is a lot of interest. There's a lot of companies that want to come forward. So I I have high hopes that it'll do well over the next year or two. Well, it sounds like a really exciting future for both of the exchanges. Is there anything final that either you either of you would add before I let you both go? Uh, >> I think the only thing I want to add is that, you know, we really are seeing in the marketplace, especially in Canada, um, that our issuers and our investors


are wanting to leave our borders and have opportunity to invest in companies outside of Canada. Our issuers are needing to leave Canada to raise capital. Um but what we're seeing is that it's starting to happen in a very cohesive way and this is just I think adding to that opportunity. >> Yeah. And I I'll add to that as well is that also I think big part of what our mission is going forward is spreading the word at the NSX, right? Letting people become familiar as the brand and


the exchange uh not just in a domestic market but on an international scale. Uh so please look out for us. Uh we've got a lot of engagement especially we believe in engaging with the younger demographics. So we do have a podcast. So, if you're interested in learning more about the Australian capital markets, not just, you know, the boring stuff, but also the characters that have formed it over time, uh, please feel free to to tune in. >> Amazing. Well, thank you both very much for coming on to explain the


acquisition, what's going on in the future. This is great. >> Thank you so much, Charlotte. Thank you very much for having us. >> Of course. And once again, I'm Charlotte Mloud with investingnews.com and this is Anna Sarin and Eduardo Carmona. >> [music]