Market Liquidity Program & Market Intelligence
Market Liquidity Program
CHF has developed a successful and approved approach to support our clients in the trading market. Under the guidelines of Policy 3.4 of the TSX Venture Exchange all the rules and regulations around keeping an orderly market are articulated and aim to improve the volumes and reduce the volatility of issuers’ shares.
The TSX, TSX Venture and CNSX’s information each refer to "market-making" as an essential part of every issuer’s mandate. While TSX Venture Policy 3.4 goes a long way in recognizing the challenges of illiquid listed securities, there are few sanctioned avenues for “market-making” intervention.
Two of CHF’s three partners spent many years in both retail brokerage and trading sectors of the stock market. The firm’s comfort with the rules and regulations derived from decades of expertise enabled this solution to clients’ liquidity challenges. Developed in close consultation with regulators, effective liquidity programs have been conducted since 2002, handled by CHF partner D’Arcy Funfer, from his office in Calgary. To adhere to rules and regulations, market-making trading accounts are set up with an initial deposit from a supportive third party and not from the Issuer’s treasury.
Thanks to CHF’s many years at the top of the Canadian IR sector, we have learned how to identify which groups have the interest and ability to deliver a closing, including effective brokers with large books and who place orders, those knowledgeable about the business in question who can impart the risk/reward balance to their investing clients, and those who have the facility to raise funds for emerging companies on up to medium-cap enterprises.
At the onset of a financing, for example, CHF assembles a list of the most appropriate investment bankers and corporate financiers across Canada and approaches each with the opportunity; meetings are conducted for the client with those who express interest in learning more. Clients get CHF’s best strategic advice to achieve their financing goal without bias or wishful thinking.