The chief executive of TMX Group (X.T) is pitching the Canadian exchange operator as an alternative listings venue for small and mid-sized U.S. companies, part of an ongoing campaign to broaden TMX's listings base.

Tom Kloet, visiting U.S.-based companies this week, highlighted a Canadian regulatory environment that he said compares favorably to that of the U.S., particularly for smaller companies seen as candidates for TMX's Venture Exchange platform.

"We believe there happens to be an under-served marketplace in the small and mid-cap space in the U.S.," Kloet said in an interview on Wednesday.

TMX was formed through the 2008 merger of the Toronto Stock Exchange and the Montreal Exchange derivatives platform.

It is pursuing new listings in the aftermath of a global economic crisis that saw many private companies postpone a public flotation, or pursue other options for financing in a tight credit environment.

The Toronto-based company is actively courting U.S. companies for its Toronto Stock Exchange and Venture Exchange platforms, and has 264 international issuers with a combined market capitalization of $64.2 billion.

Kloet said he is seeing "cautious optimism" among companies considering an IPO - the first eight months of 2009 have seen TMX surpass its 2008 total for new listings.

"That tells you that if there's a credible story, and there is a company with decent prospects, there is money available to be put into the markets," Kloet said.

During the U.S. road show, a key focus has been its junior Venture Exchange platform, which Kloet described as a stepping stone for smaller companies looking at a listing on the TSX or rival offerings from NYSE Euronext (NYX) or Nasdaq OMX Group Inc. (NDAQ).

Kloet said that 437 Venture Exchange companies have "graduated" to a TSX listing over the past nine year. TSX carries a higher market cap threshold and more stringent regulatory requirements.

About 20% of the 500 largest TSX-listed companies started out on the Venture Exchange, according to Kloet, and the junior platform can be attractive to U.S. companies wary of tough U.S. standards around audits and internal controls for public companies.

One such company is Acro Energy Technologies Corp. (ART.X), a Houston, Texas-based solar energy integration company that listed on the Venture Exchange in 2008.

"We looked at the fact that it offers a nationwide listing, with a bit more publicity and visibility than an OTC bulletin board listing," said Douglas Samuelson, general counsel for the company, which installs power systems for residences and small commercial projects.

Samuelson said it was possible that Acro Energy could eventually move up to a TSX listing, though it could also consider a dual listing on the Venture Exchange and a U.S. exchange.

-By Jacob Bunge, Dow Jones Newswires; (312) 750 4117; jacob.bunge@dowjones.com