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TMX Group Inc.
Type Public (TSXX)
Founded Toronto, Ontario, Canada
Headquarters Toronto, Ontario, Canada
Key people Wayne Fox, Chairman
Thomas Kloet, CEO
Industry Financial
Products Stock exchange, futures exchange, market data
Revenue $533.2 Million (2008)CAD
Employees 510 (2008)[1]
Website www.tmx.com

The TMX Group Inc. (TSXX) (formerly TSX Group) owns and operates stock exchanges, the Toronto Stock Exchange, and the TSX Venture Exchange, formerly known as the CDNX, the Montreal Exchange, the Natural Gas Exchange and the Boston Options Exchange. TMX Group operates Canada's two national stock exchanges: Toronto Stock Exchange serving the senior equity market and TSX Venture Exchange serving the public venture equity market. It also serves the Natural Gas Exchange (NGX), a leading North American exchange for the trading and clearing of natural gas and electricity contracts and Shorcan Brokers Limited, the country's first fixed-income interdealer broker. TSX Group also owns The Equicom Group Inc., a provider of investor relations and related corporate communication services in Canada.

The Montreal Exchange was acquired on December 10, 2007 for C$1.31 Billion [2][3] [4] The acquisition was completed on May 1, 2008 and the corporation subsequently renamed to TMX Group Inc. [5][6]

Contents

Overview

The TMX group is organized into 6 divisions:

  1. The Toronto Stock Exchange- Toronto Stock Exchange is Canada's senior equity market, consisting of a broad cross-section of Canadian issuers. Listing on Toronto Stock Exchange provides these issuers with a range of benefits, including opportunities to access public equity capital efficiently, liquidity for existing investors and the prestige and market exposure associated with being listed on Canada's senior exchange.

Issuers list a number of different types of securities on Toronto Stock Exchange, including conventional securities such as common shares, preferred shares, rights and warrants, and new types of innovative equity-related products such as exchange-traded funds and income trusts.

  1. The TSX Venture Exchange- As Canada's public venture equity market, TSX Venture Exchange provides emerging growth companies and entrepreneurs with a range of benefits, including opportunities to access public and private venture financing, liquidity for investors and the prospect of graduating to Toronto Stock Exchange in as seamless a manner as possible. At the same time, TSX Venture Exchange offers investors an opportunity to invest in emerging companies at an early stage and through a supervised market. TSX Venture Exchange is a capital-raising infrastructure for the small and medium-size businesses.
  2. The TSX Markets - TSX Markets facilitates trading on both Toronto Stock Exchange and TSX Venture Exchange. Brokerage firms, acting as principals or agents for retail and institutional investors, place orders through TSX Markets to buy or sell listed securities using its fully electronic trading systems.
  3. The TSX Datalinx - TSX Datalinx sells real-time and historical market data, corporate information and index products.
  4. The NGX - this division of the TSX Group operates the Natural Gas Exchange (NGX). NGX is a leading North American energy exchange based in Calgary. Established in 1994, NGX provides an environment for trading and clearing natural gas and electricity contracts.
  5. The TSX Technologies - TSX Technologies is the technology team that powers TSX Group. TSX Technologies provides managed services, application development, architectural services and customized solutions for varying sized organizations across industry sectors.

The TMX group derives revenues from 3 sources:

  1. charge companies an annual fee to list on any of the 3 exchanges and to maintain that listing. Major financial institutions also pay a fee to the TSX group to become a TSX member firm.
  2. charge member firms a commission on all trades executed on the exchanges.
  3. sell real time and historical market data, trading products, and licensing revenues from the use of its exchange indices.

Each of these activities is linked to the others in a manner that supports the growth of them all: Increased trading activity creates greater liquidity and generates data. More liquid markets attract new listings and participation by brokerage firms and investors, and New listings generate more trading and market data.

2009 Priorities

TMX's strategy is to expand its integrated business, both domestically and internationally, by offering innovative cash and derivatives products across multiple asset classes. It will continue to strengthen and enhance its current product and services offering to compete for increased market share in cash, derivatives and energy markets. The Company plans to innovate by introducing new, customer-focused products, services and solutions to its marketplaces.[7]

Derivatives Trading
– Development of combined cash and derivatives trading strategies
– Development of new derivatives products including futures contracts based on a Canadian volatility index and mini-sized equity index futures contracts

Equity Trading
– Trading initiatives, including full implementation of our smart order router and new order types
– Fee incentives to attract liquidity such as the Electronic Liquidity Provider program

Trading Technology
– An enhanced equity engine gateway is being introduced
– Continuing focus on increasing capacity and reducing latency
– New phases for co-location services

Energy Trading
– Expansion of NGX’s natural gas and electricity footprint, particularly in the United States
– Expansion of crude oil trading and clearing services through the planned acquisition of NetThruPut

Issuer Services
– Growth initiatives in listings with a focus on international small and mid-size companies and cleantech companies
– Service expansion for listed companies including tailored financing vehicles, education and investor relations services

Market Data
– Focus on reducing latency and providing more content
– Development of new products to meet changing client data requirements, including the Consolidated Data Feed and Canadian Best Bid and Offer products

Management

The former CEO of the TSX Group was Barbara Stymiest. On September 2004, Stymiest announced her resignation as CEO of the TSX Group so that she could join the RBC Financial Group to serve as its COO [7]. On December 2004, the TSX Group announced the appointment of Richard Nesbitt as the new CEO of TSX Group. Richard Nesbitt had previously served as President and Chief Executive Officer of HSBC Securities Canada . Nesbitt stepped down in January 2008, and was replaced by Thomas Kloet on July 14, 2008.

References

External links

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