Canada’s major stock exchange operator is considering a policy shift that would make it very challenging to trade shares of cannabis companies using U.S. assets. If this movie is adopted, it could disrupt the flow of millions of dollars into the Canadian marijuana industry.
Canadian Depository for Securities (CDS) is a clearinghouse which handles millions of trades per day and performs necessary tasks to execute transactions. Sources have reported that the CDS is considering a refusal to settle trades for Canadian cannabis firms with American investments.
The Canadian markets have attracted investors like bears to honey because of the impending adult-use legalization coming next year.
The concern is that there are some companies raising capital in Canada, but also conducting business in the United States. While Canada has a nationally legal medical marijuana system, as well as consumer pot on its way, the United States still outlaws all cannabis at the federal level.
Further concern has come over worries that the Trump administration will start enforcing U.S. federal drug laws in states that have, in varying degrees, legalized the use of cannabis.
Because of these…