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(April 8, 2008) Many in the financial industry are applauding the Autorité des marchés financiers’ Thursday afternoon approval of the TSX/MX merger.

Ian Russell, president and CEO of the Investments Industry Association of Canada, says the new group will be able to take advantage of “superior” trading and clearing technology and the market data that both organizations already have.

“The combined entity will attract the capital needed to build innovative and dynamic markets for equities, derivatives and commodities,” he adds. “The combining of both exchanges positions Canada effectively in global markets, benefiting Canadian and foreign investors, Canadian markets and Canadian businesses.”

The Caisse de dépôt et placement du Québec also welcomes AMF’s decision.

“This is in line with the commitments the Caisse had called for with regard to continuing the operations of the Montréal Stock Exchange. The result of the combination: the Montréal Stock Exchange will be a major centre for all Canadian derivatives trading, including the carbon market, which it will handle exclusively.”

The Caisse is also pleased with AMF’s ruling that the TSX will not be able to own more than 50% of the new joint venture without AMF approval.

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Consumer confidence in U.S. at all-time low: RBC

(April 11, 2008) While Canadians are still relatively happy with their personal financial situations, it’s a different story down south.

According to the RBC Consumer Attitudes and Spending Household Index, Americans’ confidence in their own future financial conditions is weakening.

As a result, the index dropped to an all-time low in April, hitting 29.5, compared to 33.1 points in March.

“The across-the-board downturn in the survey results indicates a potential retrenchment by consumers, and corroborates suspicions that the economy has slipped into a recession,” says T.J. Marta, economic and fixed income strategist for RBC Capital Markets. “Each index fell to a record low in April, with the exception of the Jobs Index, which was less than one point above its worst level, registered in 2003 — when the economy was showing signs of stalling in its recovery from the 2001 recession.”

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Royal Bank expands international business

(April 11, 2008) The Royal Bank of Canada has made some personnel changes to its domestic and international banking businesses.

Jim Westlake, group head of Canadian banking, will now become group head of international banking and insurance. He’ll be responsible for RBC’s non-Canadian banking business, and the company’s insurance operations, and he’ll oversee the bank’s global credit card business.

Dave McKay will take over Westlake’s old job, overseeing the bank’s Canadian operations, including domestic sales and branch distribution. The executive is currently head of personal financial services.

The changes are part of RBC’s plan to expand its wealth management, capital markets, international banking, and insurance segments outside of Canada. “The moves will help RBC further leverage our strength to grow outside Canada,” said RBC’s president and CEO, Gordon Nixon.

For the past two years, operations outside Canada accounted for approximately one-third of RBC’s overall revenues, but they hope to increase that with pending international banking acquisitions that will move RBC into southeast America and the Caribbean.

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New report reveals global banks’ disclosure practices

(April 11, 2008) Financial regulators from five countries published a report Friday, reviewing disclosure practices of financial services firms and what their exposure is to high-risk financial instruments.

The Senior Supervisors Group, which includes France, Germany, Switzerland and the United States, surveyed firms to find out what exposure they had to instruments such as collateralized debt obligations, residential mortgage-backed securities, commercial mortgage-backed securities, other special purpose entities and leveraged finance loans.

The report discusses the disclosure practices of 15 banks and five securities firms. It outlines information contained in financial statements, press releases and investor presentations.

In the report, the group says, “the results of the survey indicate that disclosure practices can be enhanced without necessarily amending existing disclosure requirements, as disclosure requirements allow firms considerable discretion in how they convey information.”

(04/11/08)