LONDON, ENGLAND, May 7 /CNW/ - 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(R) 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
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
TMX acquired its stake for a total consideration of (pnds stlg)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 (pnds stlg)17.7 million and profit before tax of approximately
(pnds stlg)5.1 million.
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
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 (pnds stlg)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.
For further information:
For further information: London Stock Exchange Group, Catherine
Mattison, +44 (0)20 7797 1222; TMX Group, Carolyn Quick (416) 947-4597, Lise
Tessier (514) 871-2424 x 412