TMX Group - Maple Group Letter to Market Participants

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 economic growth.

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 and growth.

  • 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 of shareholders.

  • 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.

Sincerely,

Tom Kloet      
Chief Executive Officer     
TMX Group
                    Luc Bertrand
Maple Group Acquisition Corporation

For more information on this proposal, please visit: www.tmx.com/maple or www.abetterexchange.com.

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.

For further information:

TMX Group

Carolyn Quick
Director, Corporate Communications
416-947-4597
carolyn.quick@tmx.com    
            Paul Malcolmson
Director, Investor Relations
416-947-4317
paul.malcolmson@tmx.com

Maple

Peter Block
Toronto
416-848-1431
pblock@national.ca    
                Jean-Sébastien Lamoureux
Montréal
514-843-2368
jslamoureux@national.ca

Investor Contact:
Rudy Sankovic
416-308-7857
Rudy.Sankovic@td.com

 

Profil de l'entreprise

TMX GROUP INC.

Renseignements sur cet organisme

Maple Group Acquisition Corporation

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