FMX | Connect – www.fmxconnect.com - (Reported 7/26/2010)
TMX Group (X.TO) 2Q10 Earnings Conference Call Wednesday, July 28th at 8:00 a.m.
A conference call to review the results will be held at 8 a.m. (EDT).
Phone numbers for the live call are: 647-427-7450 or 1-888-231-8191
Webcast at: www.tmx.com, under Investor Relations
Expect TMX to release EPS of C$0.66, one cent ahead of consensus estimates, on C$141 mn in revenues
TMX trading and listings update
Trading:
Derivatives ADV at Montreal Exchange back to historical highs due to:
· A shift in volatility in the equity markets during the 2Q10
· The recovery in open interest and volumes in short term interest rate derivatives driven by higher levels of capital held by Canadian banks
Cash equities ADV at TSX were up 2% Q/Q but down 21% Y/Y; TSX Venture ADV up 63% Y/Y to near record levels
· ATSs now account for 22% of Canadian equities in 2Q10
· Consolidated velocity steadily growing to almost 300% in 2Q10
Listings:
The number of IPOs at TSX is at historical highs in 2010
The evolution of listings on TSX has to do with mining; TSX and TSX Venture Exchange accounts for 32% of money raised in the mining sector and is the market of choice for 82% of mining companies seeking funding.
TMX, ASX and JSE could create a single liquidity point for accessing 92% of mining companies in the world by entering in a cross membership agreement and/or merging markets.
· The profile of mining listed companies is similar.
· TMX and ASX have similar listing standards and reporting requirements.
· The member base at TMX, ASX and JSE is mainly local. Local members would gain access to markets abroad, bringing more business to each exchange.
· The lack of overlapping in trading hours would favor a deal among TMX, ASX and JSE
The dynamics of TSX listings is driven by the mining sector. Global mining financings experienced a 15-fold increase in the last ten years.
TSX and TSX Venture Exchange accounts for 32% of money raised in the mining sector and is the market of choice for 82% of mining companies seeking funding.
By entering in a cross membership agreement and/or merging markets, TMX, ASX and JSE could create a single liquidity point for accessing 92% of mining companies in the world.
TMX and ASX have similar listing standards and reporting requirements.
The profile of mining listed companies is similar.
The member base at TMX, ASX and JSE is mainly local. Local members would gain access to markets abroad
The lack of overlapping in trading hours would favor a deal among TMX, ASX and JSE.
TMX is trading at 11.2x our earnings for 2010, an 11% discount to the S&P TSX Composite Index
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