11/24/2017 10:27 EST | Updated 11/24/2017 10:40 EST

TMX leaves door open for clearing trades of pot stocks with U.S. activities

TORONTO — The company which owns and operates Canada's only platform used to finalize stock trades says it is leaving the door open to clearing trades of issuers with marijuana-related activities in the U.S., where pot remains illegal under federal law, for certain exchanges.

In August, the Globe and Mail reported that TMX Group Inc.-owned subsidiary and clearinghouse Canadian Depository for Securities Ltd. was contemplating a ban on clearing cannabis stocks with U.S. exposure.

TMX reiterated in a news release today that there is no ban on clearing securities of cannabis companies with U.S. interests, but discussions about how to handle those trades continue with exchanges and the Canadian Securities Administrators, the umbrella organization for Canada's provincial and territorial securities regulators.

However, TMX says today that any solution would factor in exchange rules related to issuers' compliance with applicable laws, leaving the door open for trades of cannabis companies with U.S. assets to continue on the Canadian Securities Exchange.

This comment comes after TMX, which also operates the Toronto Stock Exchange, last month warned that listed cannabis firms with U.S. exposure could face delisting from the TSX.

The CSA, however, said last month that pot companies must tell investors about certain risks when they invest south of the border, in line with the CSE's approach.