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“I see the impact on an industry segment that is vital to the Canadian economy,” he said, adding that his analysis, based on developments within his company and in the market, starts from the fact that trading volumes on the TSX and the TSX Venture Exchange last year were down substantially (20% and 33% respectively.)

That lack of overall investor interest amid reports that the half the industry could disappear within a few years means it’s more difficult for the junior explorers to finance themselves, which leads to a further downward spiral.

“That lack of resonance with investors means that “the junior resource stocks have little or no resulting upward movement,” said McKinnon, who, just like TD Bank and Royal Bank, is also no fan of high-frequency trading.

“We wonder why large trading institutions are allowed to impact junior mining stocks with high-frequency trading and also receive trading credits [under the so-called maker-taker model] from the TSX in return for placing bids,” he asks.

Given that IIROC and the OSC are investigating such trading, McKinnon, whose company has been affected by such trading, has a suggestion: ban the practice. In his view, “the playing field is not level and the large and wealthy have a decided edge and the TSX doesn’t realize that [by allowing high frequency trading] it is neutering a very important segment” of its business.

McKinnon would also disallow short selling on stocks priced below $1. (Short selling was banned for financial stocks during the height of the global financial crisis.)