TMX’s chief executive John McKenzie called on policymakers to bring forth a “clear vision” the morning after U.S. President Donald Trump agreed to pause tariffs on Canada.

Canadian leaders should do more than just address the threat of tariffs, and “become a much more formidable global player” in the long term, said McKenzie, who oversees the Toronto Stock Exchange and the TSX Venture Exchange. He made the comments in an investor call following the company’s fourth-quarter earnings release Monday evening. 

“More than 20 years ago, the Canadian economy was characterized as an emerging northern tiger, and we believe it’s time to reawaken that tiger,” he said.

McKenzie is one of the first Canadian CEOs to share remarks after Canadian Prime Minister Justin Trudeau and Trump agreed to a 30-day reprieve on tariffs for Canadian products, with Canada agreeing to bolster border security in return. That includes deploying 10,000 troops to survey the border and the appointment of a “fentanyl czar.”  

The tariff threat and “other measures of economic force from a new administration” are short-term challenges that Canada needs to defend, but policymakers need to have their eyes on the horizon, he said.

McKenzie acknowledged the uncertainty around the federal government’s leadership but urged  leaders to develop what he called a “workable strategy,” with clear regulation and a tax system that promotes investment and encourages risk-taking. 

Valuations have declined globally compared to a few years ago, when they were typically 20 to 30 times revenue, which “didn’t make sense,” McKenzie said. Now, there’s a lot more unpredictability in the market, which “makes it a lot more challenging.”

Other hurdles, including the loonie’s recent devaluation, further compound the issue. “It makes it a bit more difficult to do things in foreign currencies with Canadian dollars,” McKenzie said. “We’ll have to be thoughtful about ensuring, again, that investor value proposition makes sense when we’re making those kinds of transactions.”

McKenzie nevertheless assured investors that TMX’s overarching strategy won’t change. The company’s quarterly revenue surged 30 per cent year-over-year to $393.3 million, beating analyst expectations. Adjusted net income, meanwhile, rose 32 per cent year-over-year to $134.6 million. 

More than 50 per cent of TMX’s revenue comes from outside of Canada, which improves the company’s “resilience,” McKenzie said in a BNN Bloomberg interview. Market conditions are ideal right now, he added, with lower interest rates and large amounts of capital sitting on the sidelines, but “confidence is the gap.” The company has doubled in size over the past five years, chief financial officer David Arnold said on the earnings call.