What Is the TMX Group?
The TMX Group is a large Toronto-based financial services and products company that operates the Toronto Stock Change (TSX), TSX Mission Change, Montreal Change, and TSX Alpha Change. The group of workers operates exchanges for derivatives, equity, and fixed income trades by means of purchasing and promoting, clearing, depository, and settlement services and products.
Key Takeaways
- TMX Group operates the Toronto Stock Change, TSX Mission Change, Montreal Change (derivatives), TSX Alpha Change, and Shorcan (consistent income).
- TMX Group supplies other services and products in conjunction with TMX Datalinx, TMX Insights, TMX Money, TSX Accept as true with, Canadian Derivatives Clearing Corporate, Canadian Depository for Securities, and Trayport.
Investopedia / Sabrina Jiang
Understanding the TMX Group
TMX Group has its origins inside the Toronto Stock Change (TSX), founded in 1861 and first of all report most simple 18 stocks. Traditionally, purchasing and promoting in Canadian equities has taken place on a provincial level.
By the use of the highest of the Nineteen Nineties, TSX had transform the national change for senior equities. Its counterpart in Quebec, the Montreal Change (MX), handled purchasing and promoting in derivatives. Other provincial exchanges in Vancouver, Calgary, and Winnipeg merged to form the Canadian Mission Change (CDNX), which handled junior equities.
TSX registered as a for-profit undertaking in 1999, making it eligible to be a publicly traded stock. The Toronto Change briefly found out itself inside the bizarre position being another executing trades in shares of the industry, along with being the regulatory authority for the purchasing and promoting of those shares. In the US, authority powers would have fallen into the world of the federal level.
In step with this juxtaposition, TSX handed regulation off to Market Legislation Services and products Inc. and the Investment Dealers Association. Inside the early 2000s, TSX assumed ownership of the Canadian Mission Change (CDNX) and renamed it the TSX Mission Change.
TSX officially changed its name to the TMX Group in June 2008. In early 2011, TMX hatched plans to merge with the London Stock Change (LSE). A rival bid appeared in the summer of 2011, as a group of Canadian buyers known as the Maple Group challenged the TMX/LSE deal. The Maple Group—made up of number one Canadian banks—took over the TSX in July 2012 blocking the LSE deal.
Maple Group Ownership Changes the TMX
In recent times, TMX has more than a few its holdings and introduced services and products out of doors of the usual functions of a stock change.
- Shorcan is a fixed-income subsidiary that provides a specialized fixed-income purchasing and promoting platform.
- TMX Datalinx compiles historical and real-time data from a lot of exchanges and markets this knowledge to buyers.
- TMX Insights supplies a package deal deal of analytics and content material subject material and database regulate services and products to financial institutions.
- TSX Accept as true with supplies corporate accept as true with services and products.
- Canadian Derivatives Clearing Corporate (CDCC) is a clearing company owned by the use of the Montreal Change.
- TMX Money is a financial knowledge hub.
In October 2017, TMX were given Trayport, a London-based energy-trading platform, from the Intercontinental Change (ICE) after British regulators forced ICE to divest itself of the company. The acquisition allowed TMX to get entry to global device, energy, and derivatives markets and satisfied the British government’s interests in a more than a few marketplace for purchasing and promoting device.
Examples of TMX Group-Listed Stocks
The Canadian stock markets recreation global companies in conjunction with number one banks, energy, mining, and era companies, among others. A couple of of those number one names listed on the TSX include Royal Monetary establishment of Canada (TSX: RY) with a market capitalization of almost about C$153 billion as of February 17, 2021. Toronto-Dominion Monetary establishment (TSX: TD) has a market cap of C$137 billion.
Enbridge Inc. (TSX: ENB) has a market cap of almost about C$89 billion, Canadian National Railway Company (TSX: CNR) at over C$98 billion, and Shopify Inc. (TSX: SHOP) at over C$200 billion. Market caps are subject to daily change.
