The Canadian Trading and Quotation System, or CNQ, has rebranded itself the Canadian National Stock Exchange (CNSX), and plans to become more competitive in attracting Canadian listings, including exchange-traded funds.

The exchange will soon introduce specific rules for the listings of ETFs, moving beyond its current equity and debt listings. CNSX also plans to list other types of funds and structured products. CNSX was primarily a regulatory body that was first approved as a stock exchange in 2004, and has attracted a total of 100 listings since its launch.

Through the targeting of ETF listings, CNSX is taking most direct aim at the Toronto Stock Exchange (TSX), which brands itself as the world's first-ever ETF lister (it had an ETF listed in 1990). TSX now has 64 ETFs listed, including portfolios from among the major ETF players in the U.S., Barclays Global Investors' iShares family and Claymore Securities. It also lists a large group of ETFs from the Canadian-only Horizons BetaPro ETF family.

TSX's 64 ETF listings represent the majority of Canada's total of 73 primary ETF listings, at the end of the third quarter, according to data from Barclays Global Investors' Research & Implementation Strategy Team.

The Toronto Stock Exchange has been under fire from analysts of late for less-than-stellar growth, and has been overhauling its business model. TSX recently announced lower trading fees on ETFs, among other changes (see story here.) 

CNSX has issued a new trading fee schedule, based on a per-share mode, joining the price war with other stock exchanges in Canada. In particular, CNSX's designated market makers, an essential partner to ETFs, now receive trading fee credits for providing liquidity in designated stocks.

The exchange has made technology changes as part of the new push, hooking up with Pure Trading, its alternative exchange sister company. Pure Trading handles 5-10% of daily volumes in active Canadian stocks. CNSX is the primary representative for U.S. brokerage houses trading in Canada. CNSX will use the same X-Stream platform as Pure Trading, a move it hopes will bring more listings and trading volume. Pure Trading is Canada's most active alternative trading market.

CNSX has also made a few key senior hires to spearhead listings growth. William Woods joined as a managing director in charge of implementation of new products and listing policies. CNSX has also added a listing manager, a new position, filled by Richard Smith.