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In a wide-ranging speech today to the Canadian Club of Montreal, CEO Richard Nesbitt updated attendees on the progress of four key initiatives currently underway including the new technology platform, TSX Quantum™, that is going live before the end of the year; DEX, the new derivatives exchange planned for launch in 2009; NGX's new alliance with ICE which is expected to come to market in early 2008 and international listings marketing efforts. “TSX Group is on the move, the future is bright and Montreal will continue to be a major part of that."
TSX Quantum is beginning a phased roll out in December. He said, “This new trading system will provide our customers with greater speed and more capacity and we believe it will enable us to attract higher volumes and even more liquidity. Substantially greater capacity in the TSX Quantum trading engine will be able to handle these higher volumes with ease.”
Given TSX Group will be entering the derivatives space with the launch of DEX in 2009, Mr. Nesbitt acknowledged Quebec has played a leading role in both the development and regulatory oversight of derivatives in Canada. “I would be remiss if I did not mention the positive role that Jean St-Gelais and the AMF have played in our business. We have great admiration for the work that Jean and his colleagues are doing to modernize the regulatory system for derivative products.”
On energy, Mr. Nesbitt discussed the arrangement to combine Natural Gas Exchange’s (NGX) strengths in physical clearing with the advanced technology capabilities of IntercontinentalExchange Inc. “We are excited about the opportunity that this represents for NGX to gain access to thousands of trading screens, technology expertise and a global footprint for natural gas and electricity contracts.” Mr. Nesbitt also reviewed the recent purchase of the option to acquire all the shares of NetThruPut Inc. (NTP) - a leading Canadian electronic platform for trading and clearing crude oil - exercisable after March 15, 2009.
“NTP will secure a strong position for us on the oil side of the energy business to complement our gas and electricity trading strengths.”
Finally he updated on the 2007 U.S. listing campaign which concludes with road show stops in Palo Alto and San Diego this week. “Feedback has been very positive and we have added sixteen new U.S. listings already in the first ten months of this year. More importantly, we have opened pipelines to new business opportunities across the largest capital market in the world.”
Quebec remains extremely important to TSX Group. There are over 350 Quebecbased issuers on the two equity exchanges as at the end of last month. Within that number are over 30 new listed issuers this year, including the Bourse de Montreal and 32 new Quebec-based issuers on TSX Venture Exchange. The remarks are posted on tsx.com.
Richard Nesbitt Montreal Canadian Club Speach
About TSX Group Inc. (TSX-X)
TSX Group operates Canada's two national stock exchanges, Toronto Stock
Exchange serving the senior equity market and TSX Venture Exchange serving
the public venture equity market, Natural Gas Exchange (NGX), a leading North
American exchange for the trading and clearing of natural gas and electricity
contracts and Shorcan Brokers Limited, the country's first fixed income interdealer
broker. TSX Group also owns The Equicom Group Inc., a leading
provider of investor relations and related corporate communication services in
Canada. TSX Group is headquartered in Toronto and maintains offices in
Montreal, Winnipeg, Calgary and Vancouver.
