Jump to navigation

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
Follow Futures          
       
more >>

We Asked Traders

We asked traders for their opinion on the launch of bitcoin futures

Sponsored Content

Trading

Equities.com launches unlimited trading via Tradier Brokerage, Transforming into a news & fintech portal

Featured Topics

more Commodities>>

Commodities

Energy demand steps back in play
Advertisement
more Volatility>>

Volatility

Volatility & opportunity in the energy sector
more Financials>>

Financials

Daily Price Action: E-mini S&P 500
more Options>>

Options

Trading Vertical Option Spreads

Advertisement

TMX sees Dodd-Frank pushing debt to exchanges

By Doug Alexander, Bloomberg

November 21, 2012 • Reprints

Trading Slump

TMX has been hurt by a trading slump that has sapped revenue. The number of shares changing hands on the Toronto Stock Exchange dropped 21 percent for the first 10 months of the year compared with the same period a year ago, according to company statistics. Trading volume on the TSX Venture Exchange plunged 35 percent. In comparison, the number of contracts traded on Montreal Exchange rose 4.9 percent for the period.

Changing regulations may also create opportunities for takeovers, Kloet said.

“When regulatory change happens, there’s a host of opportunities that come out of that,” Kloet said. “That’s why I’m not willing to close the door and lock it and say, ‘no acquisitions for awhile -- small or large’.”

Kloet said his main focus is on integrating Alpha and the CDS clearing house into the company’s operations, though he’s not ruling out takeovers, whether they include smaller acquisitions such as its March purchase of Razor Risk Technologies Ltd., or more transformational deals.

“‘We are not going to put our head in the sand and ignore what’s going to happen in the marketplace,” Kloet said.

‘Strong Exchange’

Investors such as Smedley say TMX shouldn’t lose sight of acquisition opportunities.

“They should be exploring as much as possible the international opportunities because they are a very strong exchange,” Smedley said. “In particular in the resources sectors they have great global strength, possibly the best.”

Kloet cited Hong Kong Exchanges & Clearing Ltd.’s bid to buy London Metal Exchange as an acquisition he’s watching closely. At $2.2 billion, TMX couldn’t afford it, he said.

“The Hong Kong Exchange acquisition of the London Metal Exchange is a huge transaction,” Kloet said. “Don’t think for a second that we wouldn’t have been interested in that.”

Other exchange deals this year include London Stock Exchange Group Plc’s plan to buy a majority stake in LCH.Clearnet Group Ltd., Europe’s biggest clearinghouse, and Tokyo Stock Exchange Group Inc.’s $1.6 billion takeover of Osaka Securities Exchange Co.

“We’re in a period in history where things are moving very fast and they’re not going to wait for us to finish our integration,” Kloet said. “I feel a responsibility to the shareholders and the marketplace to seize opportunities if they’re out there.”

Primary Focus

TMX’s “primary focus” is enhancing Montreal Exchange’s futures products around fixed income, including Canada’s key interest-rate contract and Canadian government bond contract notes, Kloet said. That involves creating a fixed-income market- maker program where dealers offer firm bid and offer prices within the Montreal Exchange.

“That will allow people who want to manage risk from fixed income via our derivative markets to have an even more liquid market,” Kloet said. “We’ve been in the process of developing our marketplace there and it continues to grow.”

Montreal Exchange on Nov. 7 requested proposals from market participants to provide market-making of the S&P/TSX 60 Index Standard Futures contracts, starting in January, according to company filings.

“This is really a broader push into derivatives,” said Khan, who rates TMX a “sector perform.” “Given the regulatory changes that are afoot, that’s probably a right strategy, because derivatives are probably where the bulk of the growth opportunities lie.”

Bloomberg News

<<< previous
Page 2 of 2

About the Author

Related Articles
Daily Price Action: E-mini S&P 500
GBP/USD drops as weak CPI reduces BoE May rate rise odds
Daily Price Action: E-mini S&P 500
Daily Price Action: E-mini S&P 500
Daily Price Action: E-mini S&P 500
Previous
Deere profit disappoints as sales slow outside U.S., Canada
Next
Most Americans in a decade project economy will get better
Related Terms
Bloomberg 5254financials 2975Toronto Stock Exchange 1508TSX Venture Exchange 1361London Metal Exchange 588Canada 379Regulation 344Dodd-Frank 182Canadian government 91futures products 48energy contracts 47LCH 44Hong Kong Exchanges & Clearing Ltd. 36Clearnet Group Ltd. 34National Bank Financial 30London Stock Exchange Group Plc 23TMX 21fixed-income products 13Tokyo Stock Exchange Group Inc. 9TMX Group Ltd. 9Osaka Securities Exchange Co. 6Thomas Kloet 4Montreal Exchange 2Razor Risk Technologies Ltd. 1Morgan Meighen & Associates 1ca Inc. 1Candeal 1inter-dealer bond broker 1Shubha Khan 1Michael Smedley 1

Free Newsletter Modern Trader Follow

Main menu

  • Futures
    • Modern Trader Magazine
    • Commodities
    • Futures Mag Archives
    • ETFs
    • Financials
    • Forex
    • Managed Funds
    • Market Analysis
    • News
    • Options
    • Regulation
    • Technology
    • Trading Strategies
    • Education
    • Futures Op-Ed
  • Favorites
    • Alpha Pages Most Popular
    • Futures Magazine
    • Modern Trader Magazine
    • Most Popular
    • Slideshows & Lists
    • Special Topics
      • Alpha Hunters
      • Bad Boys
      • FINtech
      • High-Frequency Trading
      • Trader's Life
      • Trading Strategies
      • FUTURES MAG's 500th ISSUE
      • We asked traders
  • Traders
    • Market Data
    • Hot Charts
    • Interactive Charts
    • Trading Calendar
  • FINalternatives
  • Hard Assets
    • Home
    • Base Metals
    • Precious Metals
    • Rare Earth Metals
    • Commodities
    • Mining Investments
    • Slideshows
  • Modern Trader
    • Subscribe
    • Past Issues
  • All +
    • Follow Us +
      • FuturesMag
      • Newsletters
      • Facebook
      • Google+
      • Linkedin
      • Twitter
      • RSS Feeds
    • About Us +
      • About
      • Advertise
      • Contact
      • Contribute
      • Privacy Policy
  • !
images