FTSE TMX Debt Capital Markets will be one of the leading global fixed
income ETF index providers
Will combine TMX Datalinx's fixed income index business, PC-Bond, with FTSE's existing international fixed income business
TORONTO and LONDON, Feb. 27, 2013 /CNW/ - FTSE Group ("FTSE"), part of
London Stock Exchange Group ("LSEG"), and TMX Group today announce that
they have signed a definitive agreement to combine their fixed income
index businesses in a new joint venture. FTSE TMX Debt Capital Markets will be the third largest fixed income exchange traded fund (ETF) index
provider globally. Together these indices are used as benchmarks for
more than C$1 trillion in fixed income assets.
TMX Datalinx is TMX Group's information service division. Its fixed
income index business, PC-Bond, will be combined with FTSE's existing international fixed income index
business upon completion. PC-Bond is the leading provider of fixed income indices in Canada; FTSE is a
leading provider of fixed income indices in the UK. FTSE will own a 75
per cent majority stake in the joint venture, with TMX Group holding a
25 per cent stake.
FTSE TMX Debt Capital Markets will build on the successful track record of both organisations,
combining the strengths of FTSE and TMX Datalinx to provide innovative
fixed income index and analytical products and services. The
transaction will significantly strengthen FTSE's position in fixed
income, the second largest asset class globally with approximately
C$13.7 trillion invested. It will also increase FTSE's profile in North
For TMX Datalinx, the joint venture will enable more rapid global
expansion as it exports its industry leading fixed income index and
analytic capabilities by leveraging the global distribution reach of
FTSE, one of the world's most recognised index brands.
Commenting on today's announcement Mark Makepeace, CEO of FTSE & LSEG
Director of Information Services, said:
"The fixed income market represents a significant growth opportunity for
FTSE. In partnering with TMX Datalinx we can quickly create the scale,
quality of operation and global distribution necessary to be a
significant player in this rapidly evolving part of the index industry.
To accelerate our expansion into North America, a key growth market for
us, FTSE will be establishing an office in Toronto."
Eric Sinclair, President TMX Datalinx and Group Head of Information
Services, TMX Group added:
"This transaction provides TMX Datalinx with a new global presence in
the fixed income index business. By partnering with FTSE, we will grow
the business globally, while continuing to serve our existing Canadian
clients with the excellent quality index suite they trust and rely
Demand for fixed income indices continues to grow rapidly driven by the
need for multi-sourced prices, high governance standards and low cost
strategies. FTSE TMX Debt Capital Markets will use the power of PC-Bond's fixed income capabilities and methodology to offer the global financial
and capital markets community a suite of proven and valuable fixed
income indices and analytics tools and to use this as a platform for
In addition to holding a 25 per cent interest in the joint venture, TMX
Group will receive C$112.2 million (£72.2 million), subject to
adjustments, which will be funded from existing LSEG cash resources.
The transaction will be slightly dilutive to earnings per share for TMX
Group in 2013. The business, which will be jointly headquartered in
London and Toronto, employs nine people and had combined pro forma
revenues of C$21.3 million (£13.7 million) in 2012.
Closing is subject to customary conditions and is expected in Q2 2013.
FTSE Group (FTSE) is a world-leader in the provision of global index and
analytical solutions. FTSE calculates indices across a wide range of
asset classes, on both a standard and custom basis. FTSE indices are
used extensively by investors worldwide for investment analysis,
performance measurement, asset allocation, portfolio hedging and the
creation of a wide range of index derivatives, funds, Exchange Traded
Funds (ETFs), and other structured products.
FTSE has built an enviable reputation for the reliability and accuracy
of our indices and related data services. FTSE has a long tradition of
listening and responding to the market so that it is at the forefront
of developing new approaches to index design, many of which are now
accepted as the market standard. FTSE prides itself in continuing to
invest significant resource in researching and developing new index
The foundation for FTSE's global, regional, country and sector indices
is the FTSE global equity universe, which covers over 7,400 securities
in 47 different countries and captures 98% of the world's investable
market capitalization. FTSE's flagship global benchmark, the FTSE
All-World, is used by investors worldwide to structure and benchmark
their international equity portfolios.
Exchanges around the world have chosen FTSE to calculate their domestic
indices. These include ATHEX, Bolsas y Mercados Españoles, Borsa
Italiana, Bursa Malaysia, Casablanca SE, Cyprus Stock Exchange, IDX,
JSE, LSE, NASDAQ Dubai, NYSE Euronext, PSE, SGX, Stock Exchange of
Thailand and TWSE. In addition, FTSE works with a variety of companies
and associations to deliver innovative index solutions which provide
the market with fresh opportunities.
FTSE is an independent company owned by the London Stock Exchange Group.
For more information visit www.ftse.com
About TMX Group (TSX:X):
TMX Group's key subsidiaries operate cash and derivative markets and
clearinghouses for multiple asset classes including equities, fixed
income and energy. Toronto Stock Exchange, TSX Venture Exchange, TMX
Select, Alpha Group, The Canadian Depository for Securities, Montreal
Exchange, Canadian Derivatives Clearing Corporation, Natural Gas
Exchange, BOX Options Exchange, Shorcan, Shorcan Energy Brokers,
Equicom and other TMX Group companies provide listing markets, trading
markets, clearing facilities, depository services, data products and
other services to the global financial community. TMX Group is
headquartered in Toronto and operates offices across Canada (Montreal,
Calgary and Vancouver), in key U.S. markets (New York, Houston, Boston
and Chicago) as well as in London, Beijing and Sydney. For more
information about TMX Group, visit our website at www.tmx.com. Follow TMX Group on Twitter at http://twitter.com/tmxgroup.
About London Stock Exchange Group:
London Stock Exchange Group (LSE.L) sits at the heart of the world's
financial community. The Group operates a broad range of international
equity, bond and derivatives markets, including London Stock Exchange;
Borsa Italiana; MTS, Europe's leading fixed income market; and
Turquoise, offering UK and Russian derivatives trading, pan-European
and US lit and dark equity trading. Through its markets, the Group
offers international business unrivalled access to Europe's capital
The Group is a leading developer of high performance trading platforms
and capital markets software and also offers its customers around the
world access and an extensive range of real-time and reference data
products and market-leading post-trade services. The Group is also home
to a world leading index provider FTSE, which creates and manages over
200,000 equity, bond and alternative asset class indices.
Headquartered in London, United Kingdom with significant operations in
Italy and Sri Lanka, the Group employs around 1,900 people.
Further information on London Stock Exchange Group can be found at: http://www.londonstockexchangegroup.com/
Certain information contained in this announcement may constitute
"forward-looking statements," which can be identified by the use of
terms such as "may", "will", "should", "expect", "anticipate",
"project", "estimate", "intend", "continue," "target" or "believe" (or
the negatives thereof) or other variations thereon or comparable
terminology. These forward looking statements include matters that are
not historical facts and include statements regarding LSEG's or TMX
Group's intentions, beliefs or current expectations concerning, among
other things, LSEG's or TMX Group's results of operations, financial
condition, liquidity, prospects, growth and strategies. Due to various
risks and uncertainties, actual events or results or actual performance
of LSEG or TMX Group, as the case may be, may differ materially from
those reflected or contemplated in such forward-looking statements. As
a result, investors should not rely on such forward-looking statements
in making their investment decisions. No representation or warranty is
made as to the achievement or reasonableness of and no reliance should
be placed on such forward-looking statements.
By their nature, forward looking statements involve risk and uncertainty
because they relate to future events and circumstances. A number of
factors could cause actual results and developments to differ
materially from those expressed or implied by the forward looking
statements. Save as required by law (including without limitation
applicable securities law) or, in the case of LSEG, by the Listing
Rules of the Financial Services Authority, neither LSEG nor TMX Group
undertakes any obligation to release publicly the results of any
revisions to any forward looking statements in this announcement that
may occur due to any change in its expectations or to reflect events or
circumstances after the date of this announcement.
SOURCE: TMX Group Inc.
For further information:
London Stock Exchange Group
+44 (0) 20 7797 1222
+44 (0) 20 7797 3322