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(August 15, 2007) On Wednesday the TSX Group announced that it is launching a new derivatives exchange. The DEX is set to begin operation in March 2009.

The new exchange will list and trade options, futures and options on futures on a variety of Canadian securities.

Also announced today, the TSX Group has secured exclusive use of Standard & Poor’s S&P/TSX equity indexes in connection with options, futures, and options on futures.

“The exclusive equity index licence agreement is a significant next step for our new market,” said Rik Parkhill, president of TSX Markets. “It underpins our strategy of integrating the cash equity market with the equity derivatives market through a seamless connection with superior liquidity. As we work with ISE to create the framework for our new exchange, DEX will be an innovative, globally competitive derivatives exchange for Canada.”

Partnering with the TSX on the DEX is the International Securities Exchange, which will own 48%, leaving the TSX Group with a 52% stake in the DEX.

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BMO appoints new Atlantic vice-presidents

(August 15, 2007) The Bank of Montreal announced Wednesday that it has appointed two new vice-presidents to head up its Atlantic Canada operations.

BMO veteran Carolyn Booth is responsible for New Brunswick and P.E.I., while Michael Bonner is tasked with Nova Scotia, which has 30 branches and 500 employees.

Booth has been with the bank for 15 years, most recently as a personal banking area manager in Saint John. Bonner has been in the financial services industry for 15 years, spending some of that time as a senior manager in real estate finance for BMO.

“Throughout their careers with BMO, Ms. Booth and Mr. Bonner have demonstrated a strong commitment to customer service while leading their teams to superior performance,” said Steve Murphy, senior vice-president of BMO’s Atlantic Provinces division. “These new executive colleagues and our leadership group will focus on ensuring that our employees offer our customers a superior banking experience and personalized financial solutions during each branch visit or conversation.”

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Increase in Canadian IPOs on AIM

(August 15, 2007) More Canadian companies listed on AIM this quarter than last, according to PricewaterhouseCoopers.

The company released its Canadian AIM IPO survey on Wednesday, which said three new Canadian companies listed in Q2, compared to two in Q1. That matches the Canadian IPO activity of Q2 2006.

“The continued listing activity of Canadian companies is indicative of their solid interest in the AIM market as a good source for capital, especially in the technology sector,” says Ari Sahakian, a director with PricewaterhouseCoopers’ transaction advisory group.

Overall, AIM IPO activity fell this quarter to 65, compared to 89 listings in Q2 of last year.

Activity on the TSX also slowed down this quarter, with only eight IPOs occurring, compared to 18 this time last year.

In contrast, the TSX Venture Exchange doubled its IPO activity this quarter over Q2 2006 with 10 listings.

“This suggests that the source and size of placements is changing to markets like AIM and the Venture Exchange,” says the company in a release.

While more Canadian IPOs are a good thing for AIM, the positive numbers are deceiving. The total number of Canadian AIM-listed companies actually fell to 41 at the end of June, with six companies from the energy and mining sectors delisting during the quarter. The companies either moved to the LSE or were bought out.

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Perimeter Financial creates new trading system

(August 15, 2007) A new alternative trading system is coming to Canada. Perimeter Financial announced Wednesday that it is launching the OMEGA ATS in Q4 2007.

The new system is for IDA members and will provide them with a “fast, anonymous and strict price/time priority” trading platform.

OMEGA ATS participants will be allowed to see live executable prices at, or better than, the Canadian best bid and offer for TSX-listed securities. Perimeter says the new system will offer competitive commission rates.

Involved in launching OMEGA ATS, alongside Perimeter Financial, are MarLar Group and Swift Trade.

(08/15/07)