TSX Group
Encyclopedia
The TMX Group Inc. owns and operates stock exchange
Stock exchange
A stock exchange is an entity that provides services for stock brokers and traders to trade stocks, bonds, and other securities. Stock exchanges also provide facilities for issue and redemption of securities and other financial instruments, and capital events including the payment of income and...

s, the Toronto Stock Exchange
Toronto Stock Exchange
Toronto Stock Exchange is the largest stock exchange in Canada, the third largest in North America and the seventh largest in the world by market capitalisation. Based in Canada's largest city, Toronto, it is owned by and operated as a subsidiary of the TMX Group for the trading of senior equities...

 (TSX), and the TSX Venture Exchange
TSX Venture Exchange
The TSX Venture Exchange is a stock exchange in Canada. It is headquartered in Calgary, Alberta and has offices in Toronto, Vancouver, and Montreal. All trading through the Exchange is done electronically, so the Exchange does not have a "trading floor"...

 (TSX-V), formerly known as the Canadian Venture Exchange (CDNX), the Montreal Exchange
Montreal Exchange
The Montreal Exchange or MX is a derivatives exchange, located in Montreal, that trades futures contracts and options on equities, indices, currencies, ETFs, energy and interest rates. Since 1965, it has been located in the Tour de la Bourse , Montreal's third-tallest building...

, the Natural Gas Exchange and the Boston Options Exchange
Boston Options Exchange
Boston Options Exchange Group, LLC is an automated stock exchange owned and operated by the TMX Group. As an equity options market, it provides electronic order matching services to stock brokers and traders.- Overview :...

. 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 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. TMX Group also owns The Equicom Group Inc., a provider of investor relations and related corporate communication services in Canada.

The TMX Group is the leader in the oil and gas sector. At the end of 2007, there were 434 oil and gas companies with a total market capitalization of $544.9 billion listed on Toronto Stock Exchange and TSX Venture Exchange. Oil and gas companies continue to raise equity on these exchanges with $5.56 billion raised in the first half of 2007, and $10.5 billion raised in 2006. Over 10 billion oil & gas shares, valued at $169.2 billion, traded on Toronto Stock Exchange and TSX Venture Exchange in the first half of 2007.

History

In 2001, the Toronto Stock Exchange acquired the Canadian Venture Exchange (formed by the merger of the Vancouver Stock Exchange and Alberta Stock Exchange on November 29, 1999), which was renamed the TSX Venture Exchange
TSX Venture Exchange
The TSX Venture Exchange is a stock exchange in Canada. It is headquartered in Calgary, Alberta and has offices in Toronto, Vancouver, and Montreal. All trading through the Exchange is done electronically, so the Exchange does not have a "trading floor"...

 on July 31, 2001. The acquisition was carried out through a parent company, TSX Group Inc..

The Montreal Exchange
Montreal Exchange
The Montreal Exchange or MX is a derivatives exchange, located in Montreal, that trades futures contracts and options on equities, indices, currencies, ETFs, energy and interest rates. Since 1965, it has been located in the Tour de la Bourse , Montreal's third-tallest building...

 was acquired on December 10, 2007 for C$
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...

1.31 Billion
The acquisition was completed on May 1, 2008 and the corporation subsequently renamed to TMX Group Inc.

On June 11, 2008 at a meeting of shareholders of TSX Group Inc a resolution to change the name of the corporation to TMX Group Inc. was put forward.

On February 9, 2011, the London Stock Exchange Group announced that they had agreed to merge with the TMX, creating a combined entity with a market capitalization of $5.9 trillion (£3.7 trillion). Xavier Rolet, CEO of the LSE Group, will head the company, while TMX Chief Executive Thomas Kloet will become president. Based on data from November 30, 2010 the new stock exchange would be the second largest in the world with a market cap 47% greater than the Nasdaq. Announced on June 1, 2011, the provisional name for the combined group would be LTMX Group plc.

On June 13, 2011, a rival bid from the Maple Group of Canadian interests, was unveiled: a cash and stock bid of $3.7 billion CAD, in hopes of blocking the LSE Group's takeover of TMX. The group is composed of the leading banks and financial institutions of Canada. Luc Bertrand, spokesman for Maple Group and one of the drivers of the bid is vice chairman of the National Bank of Canada and also TMX Group's largest individual shareholder.

On June 22, 2011, the LSE Group and TMX agreed to pay a special dividend to shareholders. The special dividend is meant to sway voters away from Maple Groups rival bid. The dividend was valued at $678 million with TMX shareholders receiving $4 per share and LSE shareholders receiving $1.36 per share. Including the special dividend, the LSE agreement would be valued at $48.90 per share versus the $48 per share of Maple. The exchanges also pledged to maintain the dividend at least as high as the current TMX annual payout, which is C$1.60 a share.

On June 29, LSEG and TMX terminated the merger plans after it appeared that the merger would not be approved by the need two thirds majority of TMX shareholders.

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
Chief operating officer
A Chief Operating Officer or Director of Operations can be one of the highest-ranking executives in an organization and comprises part of the "C-Suite"...

 http://www.rbc.com/governance/executive-officers.html. On December 2004, the TSX Group announced the appointment of Richard Nesbitt
Richard Nesbitt
Richard William Nesbitt is a Canadian financial executive. He became CEO of CIBC World Markets on February 29, 2008, replacing former CIBC World Markets head Brian Shaw....

 as the new CEO of TSX Group. Nesbitt had previously served as President
President
A president is a leader of an organization, company, trade union, university, or country.Etymologically, a president is one who presides, who sits in leadership...

 and Chief Executive Officer
Chief executive officer
A chief executive officer , managing director , Executive Director for non-profit organizations, or chief executive is the highest-ranking corporate officer or administrator in charge of total management of an organization...

 of HSBC Securities Canada
HSBC Bank Canada
HSBC Bank Canada, formerly the Hongkong Bank of Canada , is a bank in Canada that is part of British banking giant HSBC - one of the largest banking groups in the world. HSBC Canada is the seventh largest bank in Canada, with offices in every province except Prince Edward Island, and is the...

. Nesbitt stepped down in January 2008, and was replaced by Thomas Kloet on July 14, 2008.

External links

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