London Stock Exchange Group and TMX Group to partner in European derivatives
London Stock Exchange Group and TMX Group Inc. (TMX) today announced the formation of a new strategic partnership in derivatives.
At the core of this collaboration is the development of EDX London, the equity derivatives business of the London Stock Exchange. Specifically, London Stock Exchange will acquire a licence to use SOLA® Trading, a leading derivatives trading technology developed by Montréal Exchange, a subsidiary of TMX. In addition, TMX is in advanced negotiations with London Stock Exchange to acquire a minority position in EDX London.
“TMX is very proud of the SOLA technology and we are pleased that London Stock Exchange Group has chosen the platform for its derivatives businesses,” said Thomas Kloet, Chief Executive Officer, TMX. “We are also very excited about the opportunity to participate in the growth and development of the European derivatives market.”
Clara Furse, Chief Executive of London Stock Exchange Group, said: “The use of SOLA will give the Group a state-of-the art, proven derivatives trading platform, significantly increasing our ability to develop our derivatives markets. Moreover, our partnership with TMX offers exciting scope for developing new products, building on our recent success with our highly liquid Russian derivatives market.”
It is anticipated that EDX London, which offers access to trading and clearing services in Nordic and Russian equity and fixed income derivatives, will move onto SOLA Trading technology in November 2009. The introduction of new trading technology will bring lower latency and richer functionality, providing member firms with new opportunities to develop their trading strategies and broaden their service offering through the provision of Direct Access.
SOLA Trading, the TMX proprietary electronic trading platform, provides an extremely fast and reliable trading system for a variety of financial products such as options and futures. It is scalable, enabling the introduction of new products and significant volume growth with limited incremental costs. SOLA offers exceptional performance and capacity at a very low cost, positioning it as one of the leading derivatives platforms in the world.
The derivatives markets of TMX and London Stock Exchange Group have a broad reach in terms of their membership and product range. TMX’s subsidiaries operate Montréal Exchange, covering Canadian derivatives, and are majority owner and technology provider for Boston Options Exchange (BOX), focusing on US equity options. London Stock Exchange Group’s derivatives markets encompass: EDX London; IDEM, the Milan-based market offering trading in Italian equity derivatives; and IDEX, the recently launched market for power derivatives.
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For further information, please contact:
London Stock Exchange Group
Catherine Mattison +44 (0)20 7797 1222
Carolyn Quick + 1-416-947-4597
Notes to Editors
About London Stock Exchange Group:
London Stock Exchange Group is Europe's leading diversified exchange business. It operates Europe's largest and most liquid equity market, holds the number one position in trading ETFs and securitised derivatives, and through its interest in MTS, is the leading platform for the trading of fixed income products.
The London Stock Exchange itself is the world's most international exchange with nearly 700 overseas companies from over 70 countries on its markets. It has consolidated this position in the last three calendar years, having attracted 218 international companies which raised over £32 billion between them. These figures include international companies on AIM, the London Stock Exchange's growth market, which has grown to become the world's most successful market for small and medium sized enterprises with over 1500 companies at the end of 2008.
Following its merger with Borsa Italiana in 2007, London Stock Exchange Group also now offers post-trade services such as netting, clearing and settlement on an efficient and competitive basis, and a comprehensive range of European bond trading services through MTS.
About TMX Group:
TMX Group's key subsidiaries operate cash and derivative markets for multiple asset classes including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, Montreal Exchange, Natural Gas Exchange, Boston Options Exchange (BOX), Shorcan, Equicom and other TMX Group companies provide trading markets, clearing facilities, data products and other services to the global financial community. TMX Group is headquartered in Toronto with offices in Montreal, Calgary and Vancouver. For more information about TMX Group, visit our website at www.tsx.com.