Press releases 2009
TMX Group to take 19.9 per cent stake in EDX London
London Stock Exchange Group and TMX Group Inc. (TMX) today cemented their recently announced strategic partnership, with TMX agreeing to take a 19.9 per cent stake in EDX London Limited, the London Stock Exchange’s equity derivatives business.
Starting later this year, the EDX London markets will be migrated to the SOLA® Trading platform, a leading derivatives trading technology developed by TMX’s Montréal Exchange, which EDX London will use under licence. Additionally, the two groups will work together to develop EDX London.
Thomas Kloet, TMX Chief Executive Officer, said:
“Acquiring this equity position in EDX London opens an exciting new door for us to participate in the growth and development of the European derivatives market, which adds a new geographic element to TMX’s diversification strategy.”
Clara Furse, Chief Executive of London Stock Exchange Group, said:
“We are delighted to have a new partner in EDX London. TMX’s decision to take a stake in the business is a tribute to EDX London’s strong growth and potential, as demonstrated by the striking success of the Russian derivatives service.”
TMX acquired its stake for a total consideration of £4.35 million or approximately Canadian $7.7 million, invested in cash into EDX London. For the year to 31 March 2008, EDX London had gross assets of approximately £17.7 million and profit before tax of approximately £5.1 million.
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For further information, please contact:
London Stock Exchange Group
Catherine Mattison +44 (0)20 7797 1222
Carolyn Quick + 1-416-947-4597
Lise Tessier + 1-514-871-2424 x 412
Notes to Editors
1. Created in 2003, EDX London is the London Stock Exchange’s equity derivatives market providing the international investor community a gateway to Scandinavian and Russian International Order Book derivatives. The market, which is now 19.9 per cent owned by TMX Group, and the remaining 80.1 per cent by London Stock Exchange Group has over 80 member firms, including the leading European and global investment banks and derivatives firms. Trades are cleared through LCH.Clearnet, and the exchange offers a cleared-only service for IOB equity derivatives.
About London Stock Exchange Group:
London Stock Exchange Group is Europe's leading diversified exchange business. It operates Europe's largest and most liquid equity market, holds the number one position in trading ETFs and securitised derivatives, and through its interest in MTS, is the leading platform for the trading of fixed income products.
The London Stock Exchange itself is the world's most international exchange with nearly 700 overseas companies from over 70 countries on its markets. It has consolidated this position in the last three calendar years, having attracted 218 international companies which raised over £32 billion between them. These figures include international companies on AIM, the London Stock Exchange's growth market, which has grown to become the world's most successful market for small and medium sized enterprises with over 1500 companies at the end of 2008.
Following its merger with Borsa Italiana in 2007, London Stock Exchange Group also now offers post-trade services such as netting, clearing and settlement on an efficient and competitive basis, and a comprehensive range of European bond trading services through MTS.
About TMX Group:
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, Montreal Exchange, Natural Gas Exchange, Boston Options Exchange (BOX), Shorcan, Equicom and other TMX Group companies provide trading markets, clearing facilities, data products and other services to the global financial community. TMX Group is headquartered in Toronto with offices in Montreal, Calgary and Vancouver. For more information about TMX Group, visit our website at www.tsx.com.