- Revenues of $19.1 million compared to $14.6 million
- Net earnings of $4.9 million, up $0.7 million
- Diluted earnings per share of $0.58, up from $0.49
Montréal Exchange Inc. (MX) announced today its financial results for the first quarter ending March 31, 2006.
Total revenues were $19.1 million in the first quarter of 2006, an increase of 31% from $14.6 million for the same quarter of 2005. This performance was driven primarily by strong growth in transaction revenues (up 43% to $8.5 million), clearing revenues (up 37% to $3.0 million) and revenues generated by information systems services (up 12% to $4.1 million).
“The sustained increases in our trading volume – quarter after quarter – in recent years indicate the impressive growth potential of the Canadian market for financial derivatives and highlights the ability of the MX’s team to translate that potential into tangible results,” said Luc Bertrand, President and Chief Executive Officer of the Montréal Exchange.
“The 44% growth in trading volume in the first quarter was remarkable,” Mr. Bertrand added. “This result strengthens our determination to develop the full potential of MX markets. We are particularly happy about the strong growth in the equity options market, where we saw a 34% increase in trading activity. As well, we have seen continued growth in client demand for our core interest rate future products, mainly the BAX (volume up 52%) and the CGB (volume up 61%), during the first three months of 2006. This performance follows the year 2005, when both BAX and CGB experienced the fastest growth in their respective categories of the international derivatives market.”
The MX reported net earnings of $4.9 million for the first quarter, up 55% compared to $3.2 million in the same period of 2005 (excluding a one-time dilution gain of $1.0 million). This increase is attributable mainly to strong growth in trading activity. Diluted earnings per share totalled $0.58 in the quarter, compared to $0.49 for the corresponding period of 2005.
During the first quarter, the Boston Options Exchange (BOX) announced its decision to adopt the new trading system developed by the MX. “The deployment of SOLA technology in coming months will strengthen MX’s position in the global market niche for information technology services designed specifically for financial exchanges,” said Mr. Bertrand.
In Europe, as previously announced, MX was formally recognized as a market by the French securities authority last February. With this regulatory approval in hand, the MX team is pursuing a marketing effort in France with the goals of recruiting new foreign approved participants, accessing new liquidity pools and raising foreign investors’ interest in Canadian financial derivatives.
Finally, the MX has been pursuing discussions with the Chicago Climate Exchange with the aim of creating the Montréal Climate Exchange, which would be the first organised market for financial products linked to the environment in Canada. “This initiative is associated with political and regulatory conditions that continue to evolve,” said Mr. Bertrand. “We have high hopes and confidence that we will play a leadership role in building this market of the future.”
The financial report for the first quarter of 2006 is available on the web site of the Montreal Exchange, www.m-x.ca.
About the Montréal Exchange
The Montréal Exchange is Canada’s oldest exchange and continues to be the leader in derivative products. The Montréal Exchange offers individual and institutional investors, both in Canada and abroad, a wide range of risk management products for protecting their investments and ensuring growth. The Montréal Exchange is fully electronic and its services include: trading, training, market information, market operations and regulations as well as information technology solutions. The Montréal Exchange, through its wholly-owned subsidiary, the Canadian Derivatives Clearing Corporation ("CDCC"), provides central counterparty clearing services for Montréal Exchange listed products. The Montréal Exchange is also a significant shareholder of the Boston Options Exchange (BOX), a US automated equity options exchange whose technical operations are ensured by the Montréal Exchange. For more information, please visit www.m-x.ca.
