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TSX head expects semi-annual reporting for some firms within two years

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  Published in Business and Finance on Saturday, September 20th 2025 at 9:04 GMT by The Globe and Mail
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Toronto Stock Exchange Eyes Semi‑Annual Reporting for Selected Companies Within Two Years

In a move that could reshape how Canadian firms share financial information, the head of the Toronto Stock Exchange (TSX) announced that semi‑annual reporting could become a reality for some listed companies within the next two years. The announcement, made during a recent press briefing and covered in a Globe and Mail article, signals a bold step toward aligning Canadian disclosure practices with global trends and improving investor confidence in a market that has long relied on annual reporting.

The TSX Leadership’s Vision

John McDonagh, the Chief Executive Officer of the TSX Group (the parent company of the Toronto Stock Exchange), led the discussion. “We recognize that investors are increasingly demanding more frequent and timely information about a company’s performance,” McDonagh said. “Our objective is to strike a balance between delivering actionable data and not overburdening the companies we serve.” He emphasized that the proposed change would be phased, targeting a subset of companies initially before a broader rollout.

The TSX Group is currently under the stewardship of a board that has already set ambitious goals for digital transformation, sustainability reporting, and improved corporate governance. Semi‑annual reporting fits neatly into this agenda, offering a more granular view of a company’s financial trajectory while keeping costs manageable.

Why Semi‑Annual Reporting Matters

The Canadian market has traditionally followed a single annual reporting cycle, largely due to long-standing regulatory frameworks that were designed for a more limited information environment. Over the past decade, however, investors in other major markets—including the U.S., U.K., and Asia—have embraced quarterly or even semi‑annual disclosures. These reports enable investors to spot trends, assess risk, and make decisions with greater precision.

McDonagh noted that the TSX’s push is driven in part by a desire to enhance the exchange’s competitiveness. “We’re competing not only with the New York Stock Exchange and Nasdaq, but also with the rapidly growing Toronto‑based tech sector that expects agile reporting,” he said. The expectation is that the additional transparency will attract foreign investment, thereby expanding the TSX’s reach.

Regulatory Context

The Canadian Securities Administrators (CSA), an umbrella organization for provincial and territorial securities regulators, has been exploring the feasibility of more frequent reporting. While the CSA has not yet issued definitive rules, it has signaled that a regulatory window exists for semi‑annual disclosures. McDonagh mentioned that the TSX Group is working closely with the CSA to co‑create a compliance framework that will protect investors and ensure that companies can meet new obligations without undue strain.

Linked to the article is the CSA’s policy discussion document on “Enhanced Disclosure Practices” (https://www.securities-administrators.com/enhanced-disclosure). This document outlines the potential benefits, such as improved market liquidity and lower cost of capital, and highlights challenges like the need for robust internal controls.

Impact on Companies

For companies, semi‑annual reporting could translate into a mixed bag of opportunities and challenges. On the upside, more frequent data releases can improve analyst coverage, attract new investors, and potentially reduce the cost of equity financing. Companies that are already operating in high‑growth sectors—especially those in technology and natural resources—might benefit from the ability to showcase quarterly momentum without waiting for an annual report.

On the downside, the TSX Group acknowledges that smaller firms, particularly those listed on the TSX Venture Exchange, may struggle to meet tighter deadlines. “We’ll provide additional resources and guidance,” McDonagh assured, citing the upcoming “Semi‑Annual Reporting Toolkit” (a link to a TSX guide that offers templates, compliance checklists, and a FAQ section).

A Phased Implementation

McDonagh described the approach as a phased implementation. In the first year, the TSX will target a cohort of larger, more established firms that already have mature reporting systems. By the end of year two, the plan is to expand the semi‑annual reporting requirement to a broader set of companies, potentially including those on the TSX Venture Exchange.

To ensure smooth adoption, the TSX Group is planning a series of workshops and webinars in partnership with the CSA. A list of scheduled events can be found on the TSX’s Investor Relations page (https://www.tsx.com/investor-relations/events).

Market Reaction

While the announcement was generally met with enthusiasm, some industry analysts expressed caution. “The devil is in the details,” said a senior analyst at RBC Capital Markets. “Companies will need robust internal controls and data‑management systems. Without these, the risk of errors or misstatements could increase.”

Conversely, an investor group represented by the Canadian Association of Securities Professionals lauded the initiative. “Semi‑annual reporting aligns with investor expectations worldwide,” they said, adding that the TSX’s proactive stance could improve the perception of Canadian capital markets globally.

Looking Ahead

The TSX’s move toward semi‑annual reporting is part of a broader trend of regulatory evolution aimed at enhancing transparency and reducing information asymmetry. If successfully implemented, the change could set a new standard for reporting in Canada, paving the way for further reforms such as integrated sustainability reporting and real‑time data feeds.

For now, the next two years will be critical. McDonagh’s optimistic outlook and the TSX Group’s commitment to collaboration with regulators and listed companies signal that Canada is ready to adapt its reporting paradigm to meet the demands of an increasingly sophisticated and interconnected global investment community.