TSX seeks approval to trade sustainable bonds

The Toronto Stock Exchange (TSX) is looking to start trading sustainable bonds — debt that’s issued to finance projects with environmental or other socio-economic benefits.

The TSX said Thursday that posting certain sustainable bond issues for trading on its equities trading platform would increase the bonds’ visibility and make them more accessible.

Broker dealers would benefit as they could offer their clients new sustainable investment products without making operational and systems changes, the exchange said.

The issues that are posted for trading won’t be listed on the exchange, and the TSX said that it won’t post bonds issued by public companies.

The exchange plans to seek regulatory approval for proposed rule changes to enable sustainable bond trading in proposals that will be published “in the coming weeks,” it said.

Subject to regulatory approval, it expects to launch trading in the fourth quarter.

James Langton

James is a senior reporter for Advisor.ca and its sister publication, Investment Executive. He has been reporting on regulation, securities law, industry news and more since 1994.