International Securities Exchange (ISE) and Toronto Stock
Exchange (TSX) are planning to create a joint derivatives
exchange in Canada that will compete with Montreal Exchange
The new exchange, to be named DEX, is scheduled to launch in
March 2009, when the TSX non-compete agreement over derivatives
ends with MX.
TSX will be the majority owner with 52% and ISE will own 48%
of the market. The estimated cost for the new exchange is C$26m
and will be split by both exchanges.
ISE will provide the trading platform at the exchange while
TSX will build the market structure. The plan is to offer
equity options, index futures and options as well as fixed
income derivatives products. Richard Nesbitt, TSX CEO, said
this is not so much about grabbing marketshare from MX, as it
is creating new products that are not listed in Canada.
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