- Quality listings, high liquidity, transparent marketplace all critical
to future of Canada's capital markets
- Adjustments to trading fees reflect changing market dynamics
QUEBEC CITY, Aug. 14 /CNW/ - Kevan Cowan, President TSX Markets and Group
Head of Equities for TMX Group, which operates Canada's leading public
markets, spoke this morning at the Canadian Securities Traders Association
Annual Conference in Québec City.
"In a turbulent year for all market players, TMX Group has stayed focused
on delivering innovation, products and new solutions to help drive the success
of Canada's public capital markets," said Mr. Cowan. "Today, we are the only
company in Canada that delivers a fully integrated portfolio of marketplaces
and value-added services to facilitate the flow of capital - the fuel that
will power future growth for businesses of all sizes."
During his address, Mr. Cowan outlined the work accomplished by TMX Group
at promoting Canada, including the recent participation by TMX Group in the
mission to China hosted by Finance Minister Jim Flaherty this past week, which
included representatives of Canada's major financial institutions.
"Canada should be proud of the international recognition we have gained
over the past year. That reputation for stability, good governance and sound
management has allowed Canada to emerge as an ideal venue for companies of all
sizes, in multiple sectors, to publicly list and attract capital. Across the
United States, and in China, the United Kingdom and elsewhere, TMX Group is
identifying and bringing home quality listings that will further strengthen
our national public markets."
Mr. Cowan did note that the arrival of the multiple marketplace
environment has led to new competitive pressures, but warned of the challenges
inherent in competition without equal regulation.
"As Canada seeks to enhance its capital markets and expand its
international presence, we are seeing some players opportunistically fragment
the domestic marketplace. We have and will continue to compete vigorously, but
we must ensure that there is a level-playing field that sets fair rules of the
game while protecting investors."
Also announced today were two changes to trading fees that will take
effect October 1, 2009. First, the Company will adjust the Electronic
Liquidity Provider (ELP) fee schedule to support the continued evolution of
the program and its participants. In addition, there will be a reduction in
costs for the active trader for stocks trading under $1.
Combined, these two adjustments will allow the market to continue to
attract new, quality trading participants through the ELP program while
reducing the fees for all active traders by providing an average 24% reduction
in active ("liquidity taking") trading fees across all participants for stocks
trading less than $1. It is expected that the fee changes will have an
essentially neutral impact on TMX Group revenues based on historical volumes,
product and customer mix.
In addition to Mr. Cowan, four other TMX Group speakers will be making
presentations at the CSTA conference:
- Eric Sinclair, Senior Vice President, TMX Datalinx will moderate a
panel that will examine how electronic trading has changed during the
current market conditions on August 14 at 2:50PM;
- Robert Fotheringham, Senior Vice President, Trading, will participate
in a panel on visible market places on August 15 at 9:15AM. Mr.
Fotheringham represented TMX on the China mission with Minister
- Kevin Sampson, Director, Product Development, will participate in a
panel on adapting the investment process to high frequency markets on
August 15 at 8:30AM;
- Ron Hochman, Manager Business Development, MX, will provide an
overview of the MX options market on August 14 at 1:10PM.
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, 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.tmx.com.
For further information:
For further information: Carolyn Quick, Director, Corporate
Communications, TMX Group, (416) 947-4597, firstname.lastname@example.org