TMX Group Ltd.’s charge of Canada’s capital markets is under assault from the 3 nimbler rivals striving to knock the country’s incumbent equity exchange operator off its tall perch on Bay Street. And today, a seasoned and deep-pocketed competitor in the U.S. has finalized its plans to expand north from the border.
Terence Corcoran: How Canadian chauvinism led to the decline from the TMX
Since 2012, when four big Canadian banks and four government-backed pension giants acquired TMX through a type of internal coup d’tat, trading stocks company has stalled out
Nasdaq Inc. announced Tuesday it has decided to purchase Chi-X Canada, a venue registered as an alternative trading plan where securities which are for auction on exchanges can be bought and sold, to have an undisclosed sum.
Nasdaq’s foray north via Chi-X “intensifies competition that had recently been stepped up using the recent launch of Aequitas,” a new stock exchange, said National Bank Financial analyst?Shubha Khan.
Aequitas Innovations Inc., parents company of Aequitas Neo, also revealed it has filed a complaint with the Competition Bureau of Canada alleging that TMX Group is gouging investment dealers and their clients by charging exorbitant fees for gaining access to its proprietary market data feeds, clinging to the monopolistic past to the detriment of ordinary investors who’ve a partial view of public markets.
Jos Schmitt, who runs Aequitas, said the balance his company pays for a subscription to TMX Group’s information is “marginal.” Instead, he states that he is championing the reason for dealers that has to pay hefty costs every month to connect clients to real-time data feeds, costs that are then likely transferred to their clients.