"The TSE has decided to pursue the GEM alliance because it offers benefits that best meet the interests of Canada, the TSE, its customers and its shareholders." said Barbara Stymiest, President and CEO of the Toronto Stock Exchange. "GEM offers a global solution that is compatible with our market structure, technology, clearing and settlement protocol and regulatory environment."
GEM will operate on the principles of a fair, transparent, self-regulated, agency auction market. The electronic trading systems of each GEM exchange will be linked, within and across time zones, to provide an orderly, continuous, low volatility and liquid trading environment for top-tier, high market capitalization stocks.
The alliance also aims at efficient, cost effective post-trade processing through the clearing and settlement agencies associated with each market. Richard A. Grasso, Chairman and Chief Executive Officer of the New York Stock Exchange said, "The agreement that we are formulating will strengthen and globalize our markets within North America as well as between time zones. It will allow the GEM Exchanges to define the business and operating template. It is an ambitious and exciting challenge"
Over the coming months, the GEM alliance partners will work together to draft the terms of their agreement. These discussions will include consultation with the regulators and other stakeholders in North America and globally.
The Toronto Stock Exchange consistently ranks among the world's top exchanges by market capitalization and trading volume. In 2000, the average daily value of TSE trading has exceeded $4 billion. The TSE provides investors with a well-regulated, fair and accessible marketplace.
