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Market: TSX
Sector: Investment Services
EPIC: X
Latest Price: 46.50  (1.13% Ascending)
52-week High: 56.76
52-week Low: 46.00
Market Cap: 2,514.78M
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TMX Group
www.tmx.com

TMX Group is an integrated, multi-asset class exchange group. TMX Group's businesses operate cash and derivative markets for multiple asset classes including equities, fixed income and energy. We also provide clearing facilities, data products and other services to the international financial community.

Full TMX Group profile here
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TMX Group buys 16% stake in Bermuda Stock Exchange

21st Dec 2011, 12:05 pm by Olivia D'Orazio
TMX Group buys 16% stake in Bermuda Stock Exchange

TMX Group (TSE:X), the owner of the Toronto Stock Exchange, said Wednesday it has purchased a 16 percent minority interest in the Bermuda Stock Exchange (BSX).

The terms of the transaction, which makes TMX Group one of the largest shareholders of BSX, were undisclosed. TMX Group CEO, Tom Kloet, will join the BSX board of directors.

The news comes as a Tax Information Exchange Agreement, signed earlier this year between Canada and Bermuda, came into effect in July.

The BSX was also recognized as a Designated Stock Exchange under Canada's Income Tax Act, effective in October.

"This investment represents TMX Group’s commitment to looking beyond Canada for opportunities," Kloet said.

"BSX and TMX Group both have a culture of continually striving to innovate and offer our clients enhanced products and excellent customer service. I am certain we will be well aligned as we consider future initiatives together."

In celebration, Kloet was joined by BSX president and CEO, Greg Wojciechowski, to open trading on the Toronto Stock Exchange Wednesday morning.

Wojciechowski added: "Canada and Bermuda share a long history and important jurisdictional ties, this strategic investment can only strengthen this long standing relationship.

"We look forward to exploring new avenues of economic development and mutually beneficial cooperation in our domestic and international capital markets."

The deal comes just weeks after Canada's competition body said it had "serious concerns" about Maple Group's takeover bid for TMX Group.

The proposed takeover involves Maple, which is a consortium of 13 Canadian financial institutions, acquiring TMX - the operator of the Toronto Stock Exchange - in a friendly $3.8 billion deal, followed by the purchase of alternative trading platform Alpha Group, and securities clearinghouse, the Canadian Depository for Securities (CDS), owned by the bidding banks.

Canada's Commissioner of Competition, Melanie Aitken, advised Maple and TMX Group that she had "serious concerns" about the likely competitive effects of the proposed transactions, primarily in connection with equities trading and clearing and settlement services.

In a statement issued by Maple and the TMX, the Commissioner indicated that she has not reached a final conclusion, and that her current views may be affected by further factual information and developments, which may include changes in the applicable securities regulatory regime, and any commitments or other remedial measures that Maple may be prepared to take to address her concerns.

In June, the London Stock Exchange (LON:LON) abandoned its friendly $3.3 billion offer to acquire TMX due to insufficient shareholder support. The Maple Group made its unsolicited $50 per share offer in May.

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