Unleashing Opportunities with the NEX for Companies Below Listing Standards

Explore how the NEX provides a unique trading venue for companies not meeting standard exchange listing criteria, enhancing liquidity and investment potential.

What Is the NEX?

NEX is an exclusive board on the TSX Venture stock exchange that offers a special trading platform for companies that no longer meet the ongoing listing requirements of the TSX Venture. NEX caters to companies experiencing low business activity or those that have completely ceased operations. It provides these firms with liquidity and visibility, potentially attracting acquirers or investors. Companies on NEX are readily identifiable by an “H” or “K” extension in their trading symbols.

Key Takeaways

  • The NEX serves companies failing to meet the TSX Venture Exchange’s listing criteria.
  • It targets businesses with reduced or halted operations.
  • NEX promotes liquidity and visibility, drawing in potential investors.
  • Companies moved to NEX typically have a 90-day transition period.
  • Listing on NEX entails lower fees and simplified regulations compared to the TSX Venture Exchange.

Understanding the NEX

Launched as part of the TSX Venture Exchange based in Calgary, Alberta, NEX is an initiative for investors focusing on small-cap and emerging companies. Before the NEX, companies not meeting the listing criteria were marked as ‘inactive’ and had 18 months to rectify or face delisting. With NEX, companies now have a continuous platform without the rigorous delisting deadline, giving them an opportunity to revitalize their business.

Costs for Listing on the NEX

NEX commands a quarterly listing fee of $1,250, payable on the first business day of each quarter. For comparison, TSX Venture charges annual fees between $5,200 and $90,000 based on filing reviews. The streamlined fees of NEX were designed to remain competitive with other emerging markets, offering a clear distinction for investors assessing risk profiles.

Advantages and Disadvantages of the NEX

NEX presents a lower barrier to entry with simplified listing rules. While TSX and TSX Venture Exchange fees can run significantly higher, NEX fees remain economical. Companies benefit from remaining publicly traded, contributing to reassessment of business strategies. However, maintaining required disclosure standards and posing higher investor risks are notable challenges.


  • Provides liquidity for smaller, marginal companies
  • Lower listing fees
  • Simplified rules for listing


  • Must meet public company disclosure standards
  • NEX-listed companies are inherently riskier for investors

NEX Exchange Trading Hours

The trading hours for NEX are from 9:30 a.m. to 4:00 p.m. ET on business days.

NEX in the U.K.

The NEX Group, formerly ICAP, operates financial markets and post-trade services for financial institutions in the UK. Not associated with the TMX Group’s Canadian NEX, it specializes in electronic financial markets.

Market Value of NEX

As of December 2022, NEX Group’s market capitalization on the London Stock Exchange stood at GBP 4.23 billion. The TMX Group, which owns NEX in Canada, was valued at CAD $7.70 billion.

The Bottom Line

NEX serves as a component of the TSX Venture Exchange for companies that fail to uphold the required listing standards. It helps companies with a halt in active operations by enhancing their liquidity and spotlight, facilitating possible company turnarounds or acquisitions. Transitioning to NEX assists companies in maintaining market presence while outlining reduced listing fees and simpler regulations compared to the TSX Venture Exchange.

Related Terms: TSX Venture Exchange, small-cap stocks, liquidity, venture capital, Toronto Stock Exchange.


  1. NEX. “About Us”.
  2. NEX. “Introducing NEX”.
  3. Ontario Securities Commission. “Notice Commission Approval of the Toronto Stock Exchange Inc. Acquisition of Canadian Venture Exchange Inc”, Page 1.
  4. TSX. “Technical Guide to Listing”.
  5. Investing.com. “NXGN (LON)”.

Get ready to put your knowledge to the test with this intriguing quiz!

--- primaryColor: 'rgb(121, 82, 179)' secondaryColor: '#DDDDDD' textColor: black shuffle_questions: true --- Sure! NEX is a financial technology provider that offers electronic trading platforms and post-trade services across the transaction lifecycle. ## What does NEX primarily provide? - [ ] Physical trading floors - [x] Electronic trading platforms - [ ] Financial advisory services - [ ] Retail banking solutions ## Which aspect of financial transactions does NEX focus on? - [ ] Long-term investment strategies - [x] Post-trade services - [ ] Personal finance management - [ ] Insurance services ## Who would most likely use NEX's services? - [ ] Retail customers - [ ] Individual homeowners - [x] Institutional traders and financial firms - [ ] Local government offices ## What type of service is NOT associated with NEX? - [ ] Electronic trading - [ ] Post-trade services - [x] Personal loans - [ ] Market data services ## NEX's electronic platforms are designed to serve which part of the trading lifecycle? - [ ] Pre-trade only - [ ] Execution only - [ ] Post-trade only - [x] Across the entire transaction lifecycle ## Which financial market is NEX particularly known for? - [x] Foreign exchange - [ ] Real estate market - [ ] Personal finance markets - [ ] Consumer retail markets ## Which of the following is a key strength of NEX's platforms? - [ ] Manual transaction processing - [ ] Slow settlement times - [x] High frequency and efficiency in trade execution - [ ] Heavy reliance on human traders ## In the context of NEX's services, what does "post-trade" refer to? - [x] Settlement and clearing processes after a trade is executed - [ ] Advising clients on portfolio allocation - [ ] Initiating buy/sell orders in the market - [ ] Collecting customer feedback post transaction ## What type of users benefit the most from NEX's high-frequency trading capabilities? - [ ] Long-term investors - [ ] Personal financial advisors - [x] Institutional traders seeking speed and efficiency - [ ] Traditional retail banks ## One of the risks that can be associated with NEX's high-frequency trading platforms is: - [ ] Slow transaction processing speeds - [ ] Low market liquidity - [x] Market volatility and potential for flash crashes - [ ] Inadequate customer support This quiz covers the core aspects of NEX, aiming to familiarize participants with its primary functions, target users, and specific strengths and risks.