Outlining the efficiencies and demonstrating his argument, he told guests to the special luncheon, organized by Dalhousie University, “When we acquired TSX Venture Exchange (the former CDNX which was the result of the merged regional exchanges in 2001) we had two different trading systems and 740 people. Now we coordinate technology for two equity markets, and employ just over 500 people between those exchanges and Natural Gas Exchange (NGX), which we acquired in 2004. We’ve passed along these and other savings to market participants. As well, since 1999, TSX Group’s trading costs – to be precise our total fees per transaction – are down from $3.81 per transaction to $1.89.”
In percentage terms, total fees per transaction have been falling at a cumulative rate of 16 per cent per year while trading volumes are up 50 per cent over the year 2000 – which was the peak of the tech boom. Transactions are up 23 per cent. “Searching for efficiencies is a regular part of our business operations,” added Mr. Nesbitt.
He also told guests that Nova Scotia has a strong equity culture and the Capital Pool Company® Program will open up even more possibilities for TSX Venture Exchange to better serve the province’s entrepreneurs and investors in the future. Nova Scotia is the first of the Atlantic Provinces to approve the CPC Program.
“Nova Scotia companies now have market capitalization on Toronto Stock Exchange of $12.9 billion,” said Mr. Nesbitt. “Companies like Aliant, Sobeys and Emera carry the flag well for the province. In addition to the TSX listings, 20 Nova Scotia based issuers are listed on TSX Venture Exchange.
Copies of the remarks will be available on tsx.com or by contacting Steve Kee at +1 416 947-4682.
