TORONTO, Nov. 10, 2011 /CNW/ - TMX Group Inc. and Maple Group
Acquisition Corporation (Maple), today sent the following letter to
Canadian capital markets participants:
A Shared Vision for the Future
TMX Group is a cornerstone of Canada's capital markets and an important
catalyst for national economic activity, capital formation and foreign
investment. Its progress and success have contributed to Canada's
TMX Group and the investors in Maple - 13 of Canada's leading pension
funds and financial institutions -have developed a plan that builds on
our capital markets' strong foundations to create an integrated
exchange and clearing group that will deliver value and tangible
benefits to all users and market participants.
The opportunity before us is clear - and the benefits far-reaching:
An integrated exchange model that incorporates the CDS clearing house
and the Alpha alternative trading system will deliver cost savings and
operational efficiency to all market participants. This will lead to a
more efficient market, with globally competitive pricing, which will
help attract new investment to Canada's markets, repatriate
inter-listed company trading activity and contribute to continued
growth in a highly competitive global marketplace.
The new model is expected to attract greater investment and activity to
Canada's marketplaces, which will create important economies of scale.
New investment in Canada will lead to greater opportunity for Canada's
public companies to raise capital for infrastructure, jobs, innovation
Overall, TMX Group's strong competitive position in the global exchange
sector, and our ability to forge new partnerships and alliances and
pursue acquisitions, will be enhanced.
To realize these and other benefits, TMX Group and the investors in
Maple have developed an approach that balances a clear vision for the
future with the need to operate transparent and independent markets
that serve the needs of all participants.
TMX Group will continue to act in the best interests of the Canadian
capital markets. Maple's name, following the transaction, will
incorporate the "TMX" brand, and the new Board will have an independent
chair and at least 50% independent directors as well as representation
from Canada's independent dealer community. The governance structure
also includes a minimum number of directors resident in Quebec as well
as directors with specific expertise in derivatives and in Canada's
public venture markets.
We have made a clear commitment to open-access to all TMX Group operated
markets for all Canadian market participants. We are also committed to
maintaining existing regional headquarters and presence, which we
intend to grow significantly, such as Montreal as the national centre
for derivatives, Toronto for our equities business, Calgary for energy
and Vancouver and Calgary for our venture equity business.
There will be equitable pricing for all products and services - with all
participants paying the same price for clearing, depository and
settlement services provided by CDS. Importantly, all fees currently
subject to regulatory review will continue to be subject to the same
scrutiny and approval process. Additional definitive information on
pricing policy for CDS will be made available in the weeks ahead.
We have committed to retaining the 10% ownership limits on TMX Group,
which together with the addition of standstill agreements for the
bank-owned dealers, will prevent control of TMX Group by any sub-group
We are committed to continuing to abide by all of the existing
recognition orders, policies and decisions of all of the regulators
that currently oversee TMX Group and the exchanges it operates, as well
as new commitments to ensure TMX Group business and regulatory
decisions are in keeping with the public interest and are not unduly
influenced by any one segment of capital markets participants.
This is a unique opportunity to enhance TMX Group's global
competitiveness and strengthen our financial markets.
Ours is a proposal that serves Canadian capital markets. We encourage
you to learn more about our proposal and hope you will support this
important and beneficial transaction.
Chief Executive Officer
Maple Group Acquisition Corporation
For more information on this proposal, please visit: www.tmx.com/maple
Forward looking statements
This document contains "forward looking information" (as defined in
applicable Canadian securities legislation) that is based on
expectations, estimates and projections as of this date. Examples of
forward looking information can be identified by the use of
forward-looking words such as "plans", "expects", and "expected".
Forward looking information, by its nature, requires us to make
assumptions and is subject to significant risks and uncertainties which
may give rise to the possibility that our expectations or conclusions
will not prove to be accurate and that our assumptions may not be
correct. These factors, many of which are beyond our control, include:
regulatory requirements, market competition; business and economic
conditions generally; the level of trading and activity on our markets,
and in particular trading in our key products. Additional information
about these and other factors are located in reports filed with
Canadian securities regulators. We have no intention to update this
forward looking information, except as required by applicable
securities law. This forward looking information should not be relied
upon as representing our views as of any date subsequent to this date.
About TMX Group (TSX-X)
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, Montréal
Exchange, Canadian Derivatives Clearing Corporation, Natural Gas
Exchange, Boston Options Exchange (BOX), Shorcan, Shorcan Energy,
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 (Montréal, Calgary and Vancouver), in
key U.S. markets (Houston, Boston and Chicago) as well as in London.
For more information about TMX Group, visit our website at www.tmx.com.
About Maple Group Acquisition Corporation
Maple Group Acquisition Corporation is a corporation whose investors
comprise 13 of Canada's leading financial institutions and pension
funds. The investors in Maple are: Alberta Investment Management
Corporation, Caisse de dépôt et placement du Québec, Canada Pension
Plan Investment Board, CIBC World Markets Inc., Desjardins Financial
Group, Dundee Capital Markets Inc., Fonds de solidarité des
travailleurs du Québec (F.T.Q.), GMP Capital Inc., National Bank
Financial Inc., Ontario Teachers' Pension Plan, Scotia Capital Inc., TD
Securities Inc. and The Manufacturers Life Insurance Company. For more
information on Maple Group, visit www.abetterexchange.com.
SOURCE TMX GROUP INC.
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