TMX Group

What Is the TMX Group?

The TMX Group is a large Toronto-based financial services company that works the Toronto Stock Exchange (TSX), TSX Venture Exchange, Montreal Exchange, and TSX Alpha Exchange. The group works exchanges for derivatives, equity, and fixed income trades through trading, clearing, depository, and settlement services.

Understanding the TMX Group

TMX Group has its beginnings in the Toronto Stock Exchange (TSX), founded in 1861 and at first posting just 18 stocks. Traditionally, trading in Canadian equities has occurred on a provincial level.

Toward the finish of the 1990s, TSX had turned into the national exchange for senior equities. Its partner in Quebec, the Montreal Exchange (MX), took care of trading in derivatives. Other provincial exchanges in Vancouver, Calgary, and Winnipeg merged to form the Canadian Venture Exchange (CDNX), which dealt with junior equities.

TSX registered as a for-benefit enterprise in 1999, making it eligible to be a publicly traded stock. The Toronto Exchange before long found itself in the odd position being an exchange executing trades in shares of the business, as well just like the regulatory authority for the trading of those shares. In the United States, authority powers would have fallen into the realm of the federal level.

In response to this juxtaposition, TSX gave regulation off to Market Regulation Services Inc. also, the Investment Dealers Association. In the mid 2000s, TSX assumed ownership of the Canadian Venture Exchange (CDNX) and renamed it the TSX Venture Exchange.

TSX authoritatively changed its name to the TMX Group in June 2008. In mid 2011, TMX devised plans to converge with the London Stock Exchange (LSE). A rival bid appeared in the mid year of 2011, collectively of Canadian investors known as the Maple Group tested the TMX/LSE deal. The Maple Group — comprised of major Canadian banks — assumed control over the TSX in July 2012 obstructing the LSE deal.

Maple Group Ownership Changes the TMX

In recent years, TMX has diversified its holdings and offered services outside of the traditional elements of a stock exchange.

• Shorcan is a fixed-income subsidiary that turns out a specific fixed-revenue trading platform.
• TMX Datalinx gathers historical and real-time data from many exchanges and markets this information to investors.
• TMX Insights offers a package of analytics and content and database management services to financial institutions.
• TSX Trust offers corporate trust services.
• Canadian Derivatives Clearing Corporation (CDCC) is a clearing company owned by the Montreal Exchange.
• TMX Money is a financial information hub.

In October 2017, TMX acquired Trayport, a London-based energy-trading platform, from the Intercontinental Exchange (ICE) after British regulators forced ICE to strip itself of the company. The acquisition permitted TMX to access global utility, energy, and derivatives markets and fulfilled the British government's interests in a diversified marketplace for trading software.

Instances of TMX Group-Listed Stocks

The Canadian stock markets sport global companies including major banks, energy, mining, and technology companies, among others. A portion of these major names listed on the TSX incorporate Royal Bank of Canada (TSX: RY) with a market capitalization of almost C$153 billion as of February 17, 2021. Toronto-Dominion Bank (TSX: TD) has a market cap of C$137 billion.

Enbridge Inc. (TSX: ENB) has a market cap of almost C$89 billion, Canadian National Railway Company (TSX: CNR) at over C$98 billion, and Shopify Inc. (TSX: SHOP) at over C$200 billion. Market caps are subject to change daily.

Features

• TMX Group works the Toronto Stock Exchange, TSX Venture Exchange, Montreal Exchange (derivatives), TSX Alpha Exchange, and Shorcan (fixed income).
• TMX Group offers different services including TMX Datalinx, TMX Insights, TMX Money, TSX Trust, Canadian Derivatives Clearing Corporation, Canadian Depository for Securities, and Trayport.