Latest / How Canadian Markets Work / Episode 5: Canada's Exchanges

Transcript

Episode 5: Canada's Exchanges · How Canadian Markets Work

0:00
If you look at a Canadian stock ticker on your
0:02
screen, it really only takes about four seconds
0:06
to read the letters and the price. Right. Yeah,
0:08
it's very fast. But, you know, hidden right next
0:10
to those letters is a single tag, the exchange.
0:13
And that tag instantly reveals, well, the exact
0:16
risk profile of the company. It's a four -second
0:19
check that, I mean, most retail investors completely
0:22
ignore. And, you know, ignoring it is exactly
0:24
how you end up in the traps we're going to expose
0:27
today. Right. You might assume that just because
0:30
two tickers look identical on a screen, that
0:33
The financial and regulatory machinery supporting
0:36
them is identical, too. Exactly. It's easy to
0:38
just assume that. Right. But stepping behind
0:40
that screen, it takes you into entirely different
0:43
worlds. Welcome to this deep dive. Today, our
0:46
mission is to slowly and carefully analyze some
0:51
incredibly revealing source notes from episode
0:53
five of the series called How Canadian Markets
0:56
Work. Yeah. The notes gathered by John and Jane
0:58
for that episode, they really laid out the groundwork
1:00
on Canada's exchanges. They really did. And we
1:04
are going to uncover the hidden architecture
1:06
of these venues. OK, let's unpack this. If you
1:09
know what to look for, that four -second check
1:12
of the exchange acts as a massive structural
1:15
filter. A huge filter. Yeah. By the end of our
1:18
time together, you will instantly know exactly
1:21
how much vetting a company has survived just
1:23
by looking at its listing venue. And more importantly,
1:28
you'll understand how to avoid some pretty devastating
1:32
structural illusions waiting in the market. Right,
1:34
which is the whole point of why we're here. We
1:36
want to give you that shortcut to being truly
1:38
well -informed. So I think we should start by
1:41
looking at the primary distinction in Canadian
1:43
equities. You know, before we venture into the
1:45
alternative markets, we really need to establish
1:48
what a, well... what a listing requirement actually
1:51
achieves in the first place. Makes sense. Let's
1:54
begin with the senior exchange. The Toronto Stock
1:56
Exchange, the TSX. Exactly. When we talk about
1:58
the heavyweights of the Canadian economy, you
2:00
know, this is the room they're sitting in, the
2:02
major banks, the transcontinental railways, the
2:07
sprawling energy infrastructure. Yeah, the foundational
2:10
companies. Right. And the reason they are allowed
2:12
in this room is that they survived the filter.
2:15
Precisely. I mean, the TSX is not a club you
2:17
can just buy your way into with a good pitch
2:19
deck. No, definitely not. To get a listing there,
2:22
a company must pass extremely strict objective
2:25
thresholds. It proves the business is both viable
2:30
and stable. We're talking about real numbers
2:32
here, right? Oh, absolutely. Proven minimum trailing
2:35
earnings, substantial tangible assets, and a
2:38
highly scrutinized working capital requirement.
2:41
The exchange regulators demand absolute proof
2:45
that the business can actually keep the lights
2:46
on. So they don't need an immediate bailout just
2:49
to function. Right. They have to fund their operations
2:51
sustainably. And we also have to talk about the
2:54
minimum public float requirement, because that's
2:56
a big part of the notes from John and Jane. It
2:58
isn't just about, you know, having shares. Right.
3:01
It's about who holds them. Yeah. It means a massive
3:04
percentage of the company's equity must be freely
3:07
tradable in the public hands, distributed among
3:10
a minimum number of distinct shareholders. And
3:13
that is a critical structural mechanism. Why
3:16
does the TSX demand a massive public float? To
3:19
engineer liquidity. Exactly. They are engineering
3:23
liquidity. If a massive institutional investor
3:26
wants to buy or sell, say, a million shares,
3:29
the exchange needs to ensure the market is deep
3:31
enough to absorb that order. without completely
3:34
cratering the stock price. Right. The float requirement
3:37
guarantees that there is a deep enough pool of
3:40
participants to make the market function smoothly.
3:42
So the TFX is like a sprawling established university.
3:46
And the venture exchange, the TSX venture, which
3:49
is the junior board, is like the startup intubator
3:52
in a garage. It's not that the venture is automatically
3:54
bad, but you're taking on an entirely different
3:57
category of risk. What's fascinating here is
3:59
how deliberate that difference in risk profile
4:01
is. The venture exchange was built specifically
4:04
to solve the capital formation problem. For early
4:06
stage companies, right? Yeah, exactly. Think
4:08
of a tiny tech startup or a specialized mining
4:11
exploration team. They might have zero trailing
4:13
earnings. Wow, literally zero. Literally zero.
4:16
In fact, by the very nature of their business
4:18
model, they almost always have zero earnings.
4:21
The source notes describe this so beautifully.
4:24
A company on the venture exchange might literally
4:27
just be a mineral claim in the middle of a remote
4:30
territory, you know, a head geologist and a hypothesis.
4:34
Yes. That is what you're buying. You are buying
4:36
the geological hypothesis. And we must be very
4:38
clear here. Those early stage companies desperately
4:41
need capital. If they could not raise money,
4:44
well, the foundational layers of the Canadian
4:46
resource sector would simply cease to exist.
4:49
Right. Because nothing new would ever be discovered.
4:51
Exactly. But as an investor, you must know exactly
4:55
what you're walking into. The regulatory bar
4:58
is substantially lower, specifically because
5:00
the companies are essentially still just ideas.
5:03
So the risk is that the idea simply fails to
5:05
materialize, which, you know, happens constantly.
5:08
All the time. But let's look at the life cycle
5:10
of an idea that actually works, because these
5:12
exchanges are not static permanent destinations.
5:15
No, they're not. They're living, breathing ecosystems.
5:18
Right. And companies move between them. Let's
5:22
trace the journey of a company to really understand
5:25
how this movement alters the underlying mechanics
5:27
of the stock. Let's use a hypothetical example.
5:30
We'll call them Northridge Minerals. Perfect.
5:33
I love a good example. So Northridge Minerals
5:36
starts completely private. It is just our two
5:39
geologists, a massive tract of land in northern
5:42
Ontario, and a very compelling theory about what
5:45
is buried underneath the bedrock. Right. A classic
5:48
exploration setup. Yeah. So they raise a little
5:50
bit of seed capital privately from friends and
5:53
family just to run some basic surveys. But to
5:55
actually bring heavy machinery out there to drill
5:58
deep into the earth and prove the resource, well,
6:01
they need tens of millions of dollars. And they
6:04
can't get that on the TSX yet. No. They cannot
6:06
possibly meet the strict, heavy requirements
6:09
of the senior board. They have no revenue. So
6:11
they execute an initial public offering on the
6:14
junior board, the TSX Venture Exchange. And retail
6:17
investors slowly buy in, knowing full well they
6:20
are funding a massive binary risk. It either
6:23
works or it doesn't. Exactly. So let's say five
6:26
years go by. They drill. And against all odds,
6:29
the geological theory is correct. Oh, wow. They
6:31
hit it. They hit it. They find a massive, defined
6:34
deposit. They secure the massive project financing
6:37
to build a mine. They start extracting the minerals.
6:40
And suddenly, they're producing actual, verifiable
6:44
revenue. This is the moment of structural transformation,
6:47
isn't it? It really is. They have grown up. They
6:50
now have the assets. the sustained earnings and
6:52
the working capital to meet the strict thresholds
6:56
of the senior board. So they can move up. Right.
6:58
They initiate a process called graduating. They
7:01
apply to move from the venture exchange up to
7:03
the TSX. But wait, I have to push back here for
7:06
a second. If Northridge Minerals has just found
7:08
a massive deposit. And the stock is obviously
7:11
about to explode in value. Why wouldn't a massive
7:14
pension fund just buy the stock while it's cheap
7:16
on the venture exchange? That's a great question.
7:18
I mean, why do they have to wait for graduation?
7:20
That is the crucial mechanical difference. It
7:23
is not about the pension fund managers lacking
7:25
the foresight. It's about their legal fiduciary
7:28
mandates. Ah, the red tape. Exactly. A massive
7:31
pension fund managing billions of dollars for
7:34
retirees operates under incredibly strict internal
7:38
compliance rules. Many of those legal mandates
7:41
explicitly prohibit the fund from buying any
7:43
stock listed on a junior exchange. Really? Just
7:46
a blanket ban? A total blanket ban. The institutional
7:50
compliance officers view the venture exchange
7:52
as carrying a systemic risk profile that is simply
7:55
too high for retirement capital. Regardless of
7:58
how good the individual company's drill results
8:00
might be? Regardless. The venue itself is deemed
8:02
too risky. Wow. So by graduating to the TSX,
8:06
Northridge Minerals isn't just getting a fancier
8:09
ticker symbol. They are literally unlocking the
8:11
gates to institutional capital. Yes. New money
8:14
flows in because buyers who were legally barred
8:16
from touching the stock yesterday are suddenly
8:18
cleared to accumulate massive positions. That
8:21
is fascinating. It fundamentally changes the
8:23
liquidity profile of the asset. It does. The
8:25
direction of travel tells you everything. Yeah.
8:27
Moving up the exchange ladder broadens the foundation.
8:30
But, you know, we also have to look at the shadows.
8:31
We have to look at what happens when the journey
8:33
goes in reverse. Oh, right. Because it doesn't
8:35
always go well. Let's take our geologists at
8:38
Northridge Minerals and run the alternate timeline.
8:41
The sad timeline. Yeah. They go public on the
8:44
venture, they drill, and the earth is completely
8:47
empty. Just dirt. Right. The treasury slowly
8:50
bleeds away, paying executives and maintaining
8:52
the claims. The company shrinks. Eventually,
8:55
they fall so low they cannot even meet the ongoing,
8:59
bare minimum lifting requirements of the venture
9:01
exchange. And so they get delisted. And when
9:04
a company is delisted, the shares do not simply
9:06
vanish from your brokerage account, right? You
9:08
still technically own your equity in the corporation.
9:11
You do. You own a piece of a company that is
9:13
essentially adrift. So owning a delisted stock
9:15
is like owning a sprawling mansion in an abandoned
9:18
ghost town. You technically hold the deed to
9:21
the property, but the roads are blocked. There's
9:23
absolutely zero liquidity, enormous spreads,
9:26
and, well, no new buyers are ever coming to visit.
9:29
That is exactly the mechanical reality. The shares
9:31
fall into what is called the the counter or OTC
9:35
gray market. The gray market? It sounds ominous.
9:38
It is. The transparency mechanisms disappear.
9:41
The strict public disclosure requirements dry
9:43
up. If you try to sell your shares, you have
9:45
to route the order through specialized brokers.
9:47
And I imagine it's not cheap or easy. No. You
9:50
might find that the gap between What a market
9:53
maker is willing to pay you and what you want
9:55
to sell for the bid ask spread is impossibly
9:59
wide or worse. There might simply be no bid at
10:02
any price. Wow. So moving down the exchange ladder
10:05
essentially locks you out of your own liquidity.
10:08
It is a profound shift in risk. So we have the
10:10
TSX as a senior capital filter. The venture is
10:13
the junior stepping stone and the gray market
10:15
as the liquidity desert. But. The source material
10:18
points out that the TSX ecosystem doesn't have
10:21
a total monopoly. Right. What if a management
10:23
team looks at that entire regulatory framework
10:26
and decides they want to bypass Toronto completely?
10:28
Here's where it gets really interesting. That
10:30
brings us to our third venue, the Canadian Securities
10:33
Exchange, the CSE. The CSE. Yeah. It is an entirely
10:38
separate corporate entity, deliberately positioned
10:41
as an independent alternative. The CSE is known
10:43
for having a much lighter regulatory touch, but
10:46
Why does it exist? I mean is it just for companies
10:49
that couldn't pass the test in Toronto? Not necessarily.
10:52
It exists because compliance is incredibly expensive.
10:56
Surviving the TSX or even the venture exchange
10:59
requires armies of auditors, lawyers, and compliance
11:02
officers. Which eats up a ton of capital. Exactly.
11:05
The CSE was built to be a lower -cost alternative
11:08
with streamlined requirements. It gained massive
11:11
cultural relevance during the initial wave of
11:13
cannabis legalization and later with the explosion
11:16
of crypto -adjacent companies. Right, because
11:17
the TSX being heavily tied to massive US institutional
11:21
investors will... They had a very difficult time
11:23
listing companies that operated in legal gray
11:25
areas, particularly when cannabis was federally
11:29
illegal in the United States. Exactly. The CSE
11:32
provided a home for emerging unconventional industries.
11:35
Its architecture accommodated capital formation
11:37
for companies that the major traditional boards
11:40
simply would not touch at the time. But I have
11:42
to ask, if the CSE is known as the wild end of
11:45
the market, the place where unconventional companies
11:47
go to avoid the heavy auditing of Toronto, shouldn't
11:51
everyday investors just avoid it completely?
11:53
It sounds like the guardrails have been removed.
11:56
If we connect this to the bigger picture, we
11:59
have to view the CSE listing as a flag, not a
12:03
final verdict. A flag. Yeah. There are genuinely
12:06
sound, highly profitable companies on the CSE.
12:09
Some management teams simply look at the massive
12:12
bloated compliance costs and the heavy administrative
12:15
drag of listing on the TSX, and they choose the
12:18
lighter, more agile option to preserve capital
12:21
for their operations. So it's a strategic business
12:23
choice for them. Right. It is not an automatic
12:26
sentence of core business quality. But the crucial
12:28
trade -off is where the burden of homework falls.
12:31
That is the central mechanism. When a company
12:33
is on the TSX, the exchange regulators and a
12:36
fleet of institutional analysts have done a massive
12:38
amount of vetting for you. They've read the fine
12:40
print. They've read all of it. When a company
12:43
is on the CSE, that burden shifts entirely to
12:46
you. There are fewer institutional analysts scrutinizing
12:50
their balance sheets. The exchange regulators
12:52
have asked far fewer foundational questions.
12:55
Right. If you choose to deploy capital there,
12:58
you must be prepared to read the quarterly financial
13:01
statements yourself. to track the insider buying
13:04
and to audit the management's claims because,
13:07
well, the structural safety net is much thinner.
13:09
That makes perfect sense. So the TSX, the Venture
13:12
and the CSE are all venues designed for capital
13:15
formation companies issuing equity to raise money.
13:18
Correct. But what if a massive corporation doesn't
13:20
need to raise money? What if, say, an airline
13:23
needs to insure against the price of jet fuel
13:25
collapsing or a portfolio manager needs to hedge
13:28
a billion dollar equity position against a market
13:31
crash? That is a totally different need. Right.
13:33
That requires a completely different architectural
13:35
build, which takes us away from Toronto entirely.
13:38
Yes. This takes us to the fourth major venue
13:40
in John and Jane's analysis, the Montreal Exchange.
13:44
This is a completely different animal. It is
13:46
Canada's venue strictly for derivatives. Correct.
13:50
The Montreal Exchange handles the highly specialized
13:53
market of options and futures. Okay, options
13:56
and futures. Yeah. And the reason Canada separated
13:58
this architecture physically and regulatorily
14:01
from the equity markets in Toronto is because
14:03
the underlying mechanics of derivatives carry
14:06
distinct systemic risks. Right, because you aren't
14:09
actually buying a piece of a company. You are
14:11
trading a contract that derives its value from
14:14
an underlying asset. Exactly. If you are trading
14:17
a futures contract on an interest rate or an
14:20
options contract on a major banking stock, that
14:22
transaction lives in Montreal. So it's kept physically
14:25
and mechanically separate? Completely. The clearinghouse
14:28
mechanics are vastly different. The margin requirements
14:31
and the regulatory oversight, they have to account
14:33
for extreme leverage and counterparty risk. Wow.
14:36
It is a highly specialized room built entirely
14:39
for the complex transfer of risk rather than
14:42
the formation of corporate capital. It is brilliant
14:44
how the geography of the markets reflects the
14:47
distinct functions of the capital. It really
14:49
is elegant when you step back and look at it.
14:51
So we have mapped the four Canadian venues, but
14:55
money obviously does not respect borders. And
14:58
as we zoom out, we have to look at how these
15:00
Canadian exchanges interface with the massive
15:03
gravity of the United States markets. Yes, the
15:06
border crossing. Because this border crossing
15:08
is where things get incredibly dangerous for
15:09
retail investors. Let's establish the safe, heavily
15:14
regulated version of border crossing first. Enter
15:17
listing. OK, interlisting. So when a massive
15:19
Canadian company, let's use a major national
15:21
bank as an example, wants to access the deepest
15:24
pools of institutional capital in the world,
15:27
they don't restrict themselves to the TSX. No,
15:29
they want global reach. Right. They list in New
15:32
York simultaneously. So they have a ticker trading
15:35
in Toronto and Canadian dollars and a ticker
15:37
on the New York Stock Exchange trading in US
15:39
dollars. They do this to invite American institutional
15:42
money into their equity base without forcing
15:45
those funds to navigate foreign exchange complexities.
15:48
Makes it easy for the Americans. Exactly. Now,
15:50
a very common question retail investors ask is
15:53
whether they can find a deal or exploit an inefficiency.
15:56
by buying the Canadian shares instead of the
15:58
American ones, or vice versa. I always hear this.
16:01
People think they can outsmart the market. They
16:03
think, oh, the currency conversion is slightly
16:05
off today. I'll buy the cheaper one. Right. But
16:07
the answer is a very firm no, because of the
16:11
sheer speed of modern arbitrage. Let me give
16:14
you an analogy to help picture this. Imagine
16:16
a massive electronics store puts a premium television
16:20
on sale for Black Friday. You are standing outside
16:23
the door waiting to run in and buy it at a discount.
16:25
But the millisecond the door is open, a fleet
16:28
of high -speed robots instantly swarms the aisles,
16:31
buys every single discounted television, and
16:34
immediately resells them at full price before
16:36
you can even take a single step. That is exactly
16:39
how high frequency trading arbitrage functions.
16:42
High frequency algorithms monitor the order books
16:44
on both sides of the border every millisecond
16:47
of the trading day. Milliseconds. We can't even
16:49
blink that fast. We can't. If the price in Toronto
16:52
briefly drops even a fraction of a cent below
16:55
the equivalent price in New York, adjusted exactly
16:58
for the live currency exchange rate, these algorithms
17:01
will instantly execute a buy order in Toronto
17:03
and a simultaneous sell order in New York. Just...
17:06
Scooping up that tiny difference. Right. They
17:09
pocket the tiny fractional difference. But in
17:11
doing so, their sheer buying pressure pulls the
17:14
two prices instantly back into perfect equilibrium.
17:16
They close the gap before human eyes can even
17:19
process the data. So for you, sitting at home
17:21
managing your portfolio, there is absolutely
17:23
no structural advantage to buying one over the
17:25
other. None at all. The latency of the global
17:27
market keeps the scales permanently balanced.
17:30
And that is the benign fully transparent version
17:33
of cross -border trading. Both the TSX and the
17:35
NYSE share massive regulatory overlap. But there
17:40
is a much darker version of border crossing that
17:42
we really must address. So what does this all
17:44
mean? Let's get into the mechanics of the U .S.
17:47
OTC trap. Many Canadian small cap companies,
17:50
specifically the speculative ones listed on the
17:52
venture exchange or the CSE, they also want American
17:55
buyers. Of course they do. It's a huge market.
17:57
but they cannot possibly afford to list on the
18:00
NASDAQ or the New York Stock Exchange. Their
18:04
shares are quoted over the counter in the United
18:07
States. Over the counter. Yes. They're assigned
18:09
a U .S. ticker symbol. And this is where the
18:11
optical illusion traps the investor. The plumbing
18:14
of this is fascinating and honestly terrifying.
18:18
An investor sitting in their living room in Chicago
18:21
opens their brokerage app and types in the name
18:24
of a Canadian mining explorer. Yep. Up pops a
18:27
U .S. ticker symbol. It has the exact same format
18:30
as any other stock. four or five letters, a cleanly
18:33
updating price tag displayed in U .S. dollars.
18:35
That's totally legitimate. Very legitimate. Right.
18:38
But here's the trap. How exactly does that ticker
18:41
exist? A U .S. broker is interfacing with a market
18:43
maker who is simply looking at the Canadian venture
18:46
exchange price, doing the currency conversion
18:48
math into U .S. dollars, tacking on a massive
18:51
bid ask spread to guarantee their own profit
18:53
and presenting it to the American buyer. Wow.
18:56
So they just package it up with a markup. That
18:58
is the entire extent of the plumbing. The American
19:01
investor sees that U .S. ticker and unconsciously
19:05
lends the company the immense credibility of
19:07
the American regulatory machine. Because it's
19:09
priced in U .S. dollars and it's on their app.
19:12
Exactly. They assume the United States Securities
19:15
and Exchange Commission. The SEC has rigorously
19:18
audited this company's books, checked their working
19:21
capital, and blessed their operations. To put
19:23
it simply, just because a Canadian stock has
19:26
a U .S. price tag attached to it doesn't mean
19:28
the SEC even knows they exist. It's a complete
19:31
illusion of safety. It is a profound illusion.
19:34
Being quoted over the counter by a market maker
19:36
in the States is, well, it's light years away
19:38
from a genuine U .S. exchange listing. To list
19:40
on the New York Stock Exchange requires surviving
19:43
some of those... grueling, expensive, and intense
19:46
financial filtering on the planet. But an OTC
19:49
quote, it bypasses all of that oversight. Because
19:52
it's not an exchange. It's just a broker quoting
19:54
a price. Exactly. The SEC is not auditing the
19:58
drill results of that venture mining stock. Yeah.
20:01
Assuming the regulatory filter exists when it
20:03
absolutely does not, can cost an uninformed investor
20:07
their entire position. Let's just... Let's take
20:10
a breath and take a step back and pull all of
20:12
these mechanical threads together. What we have
20:14
uncovered today from John and Jane's notes is
20:16
that the exchange a company lives on is essentially
20:19
its corporate resume. It really is. It is the
20:22
verifiable story of what the business model has
20:25
survived. The TSX is the senior filter. If a
20:28
company trades there, it has proven its foundational
20:30
weight. It has the trailing earnings, the massive
20:33
public float, the deep working capital. You can
20:35
trust that vetting. Right. The TSX Venture and
20:38
the CSE are the incubators. They're the vital
20:41
stepping stones where capital is formed for emerging
20:44
ideas, but where the regulatory bar is much lower.
20:47
And because that bar is lower, the heavy burden
20:49
of homework and due diligence falls entirely
20:52
onto your shoulders. You have to do the reading.
20:54
You really do. And completely separate from the
20:56
equity world, the Montreal Exchange operates
20:59
its own specialized architecture, handling the
21:02
complex risk transfer mechanics of derivatives.
21:05
Options and futures. Exactly. Taking four seconds
21:08
to look closely at your screen, to check which
21:11
exchange those four letters are actually trading
21:13
on, it tells you exactly how much institutional
21:16
vetting a company has endured. It's an incredibly
21:19
powerful habit. It tells you instantly if you
21:21
are dealing with a heavily audited heavyweight
21:23
or a highly speculative geological hypothesis.
21:26
It is a four -second habit that changes your
21:29
entire baseline. It fundamentally reorients your
21:32
understanding of the risk you are putting into
21:34
your portfolio. We want to remind you that these
21:37
deep dives are crafted specifically for you.
21:40
They are gently designed to help you navigate
21:42
this incredibly complex financial architecture
21:44
without feeling overwhelmed by the sheer volume
21:47
of data. We want to give you the structural knowledge
21:50
to read the market clearly and avoid the illusions.
21:53
But before we let you go, there is one final
21:55
angle hidden in the source text that we want
21:57
you to ponder. Yeah, this is a really interesting
21:59
point. We have talked entirely about these exchanges
22:02
as neutral, objective referees. We treat them
22:06
as pure filters designed solely to protect you.
22:09
This raises an important question. Consider this.
22:13
Exchanges like the TSX and the CSE are themselves
22:16
publicly traded for profit businesses. They have
22:19
their own stock tickers. They do. They have their
22:21
own shareholders to satisfy. They have aggressive
22:24
quarterly revenue targets. And how do they make
22:26
revenue? by collecting listing fees. From the
22:29
companies? Yes. They compete fiercely with each
22:32
other to attract companies to list on their specific
22:35
venue. So they want more companies. They need
22:37
more companies. But if the corporate entity that
22:40
is responsible for setting the strict safety
22:42
standards actually profits from getting more
22:46
companies to clear those standards, who polices
22:49
the police when the pressure to lower the bar
22:51
sets in to boost quarterly revenue? It makes
22:54
you look at that glowing screen very differently,
22:56
doesn't it? You look at those four letters, you
22:58
see that clean price, and you remember that behind
23:00
the glass, nothing is quite as simple as a purely
23:02
neutral market. The incentives are always there.
23:05
Always. Not all tickers are created equal. The
23:07
filter is always shifting. Until next time, keep
23:10
looking deeper.