TMX Group

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TMX Group Inc.
Type Public
Traded as TSXX
Industry Financial services
Founded May 1, 2008
Headquarters Toronto, Ontario, Canada
Key people Charles Winograd, Chairman
Thomas Kloet, CEO
Products Stock exchange, futures exchange, market data
Revenue $575.46 million (2010) [1]
Operating income $288 million (2010) [1]
Net income $196.53 million (2010) [1]
Total assets $3.28 billion (2010) [1]
Total equity $853 million (2010) [1]
Employees 841 (2010) [1]
Divisions

Toronto Stock Exchange
TSX Venture Exchange

Montreal Exchange
Website www.tmx.com
TMX Group

The TMX Group Inc. owns and operates stock exchanges, the Toronto Stock Exchange (TSX), and the TSX Venture Exchange (TSX-V), formerly known as the Canadian Venture Exchange (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 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.

TMX Group's key subsidiaries operate cash and derivative markets for multiple asset classes including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, TMX Select, Alpha, The Canadian Depository for Securities, Montreal Exchange, Canadian Derivatives Clearing Corporation, Natural Gas Exchange, Boston Options Exchange, Shorcan, Shorcan Energy Brokers, Equicom and other TMX Group companies provide listing markets, trading markets, clearing facilities, data products and other services to the global financial community.

TMX Group is headquartered in Toronto and operates offices across Canada (Montreal, Calgary and Vancouver), in key U.S. markets (New York, Houston, Boston and Chicago) as well as in London, Beijing and Sydney.

Imperial Oil Limited (IMO TSX) shares are sold through the Toronto Stock Exchange which is owned by TMX Group (TSX: X). On January 18, 2011 IntercontinentalExchange Inc. (NYSE: ICE) and TMX Group (TSX: X), signed an agreement to "add Canadian and U.S. physical and Canadian financial crude oil products to their existing clearing and technology alliance." "Under the terms of the agreement, NGX's Canadian physical crude products will be offered for trading through ICE's electronic trading platform." [2] Imperial Oil Limited (IMO TSX) in which US-based ExxonMobil holds the controlling stock of 69.60 percent,[3] is Canada's second-biggest integrated oil company [3] (by market capitalization). Imperial Oil Ltd (IMO.TSX) is best known for its dominant position in the Alberta oil sands.[3]

History[edit]

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

The Montreal Exchange was acquired on December 10, 2007 for C$1.31 Billion [4] [5] 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. The formal vote for the deal will take place in September.[6]

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 billion (£3.7 billion). 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.[7] Announced on June 1, 2011, the provisional name for the combined group would be LTMX Group plc.[8]

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.[9] 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.[10]

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.[11] 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. [11]

On June 29, LSEG and TMX terminated the merger plans after it appeared that the merger would not be approved by the needed two-thirds majority of TMX shareholders.[12]

On July 11, 2012, Maple Group's deal was approved by all federal and provincial regulatory authorities, including the Ontario Securities Commission[13] and the Autorité des marchés financiers.[14]

On July 31, 2012 Maple Group announced that it won control of the TMX Group, as 91% of shares were tendered for its takeover offer. The formal vote for the deal will take place in September.[15]

Management[edit]

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 [1]. On December 2004, the TSX Group announced the appointment of Richard Nesbitt as the new CEO of TSX Group. 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[edit]

  1. ^ a b c d e f "Annual Results 2010". TMX Group. Retrieved 22 June 2011. 
  2. ^ "IntercontinentalExchange, NGX Expand Alliance to Physical Crude". Chicago, IL and Toronto, ON: ICE. January 18, 2011. Retrieved February 2013. 
  3. ^ a b c Bhaswati Mukhopadhyay (February 21, 2013). Sriraj Kalluvila, ed. "Imperial Oil names Exxon veteran Kruger as CEO". Reuters. Retrieved February 21, 2013. 
  4. ^ Bloomberg, "TSX Group Buys Montreal Exchange for C$1.31 Billion", Doug Alexander, 22 June 2011
  5. ^ "TSX GROUP AND MONTRÉAL EXCHANGE JOIN FORCES TO CREATE TMX GROUP". TSX Group. 2007. Retrieved 2 July 2011. 
  6. ^ "TMX GROUP HISTORY AT A GLANCE". TMX Group. Retrieved 2 July 2011. 
  7. ^ "TMX Group Inc. to Discuss merger with London Stock Exchange Group plc". TMX Group. 9 February 2011. Retrieved 2 July 2011. 
  8. ^ Wall Street Journal, "A Combined TMX-LSE Would Be Called LTMX Group", Ben Dummett, 1 June 2011
  9. ^ Reuters, "Maple Group goes hostile for TMX", Solarina Ho
  10. ^ Alexander, Doug; Pasternak, Sean B. (2011-05-17). "National Bank’s Bertrand Returns to Exchange Roots in Counterbid for TMX". Bloomberg. 
  11. ^ a b BusinessWeek, "LSE, TMX Sweeten Merger With C$660 Million Special Dividend", Sean Pasternak
  12. ^ Flavelle, Dana (29 June 2011). "Toronto-London stock exchange merger terminated". The Star (Toronto). 
  13. ^ Erman, Boyd (11 July 2012). "Maple bid for TMX clears last regulatory hurdles". The Globe and Mail. Retrieved 16 July 2012. 
  14. ^ http://www.lautorite.qc.ca/files/pdf/consultations/bourses-chambres-oar/Maple/maple-decision-2012-05-03_en.pdf
  15. ^ Freeman, Sunny (31 July 2012). "Maple Group wins control of TMX, with 91 per cent of shares tendered". The Globe and Mail. Retrieved 15 August 2012. 

External links[edit]