FTSE and TMX Datalinx create new global fixed income index business: FTSE TMX Debt Capital Markets

FTSE and TMX Datalinx create new global fixed income index business: FTSE TMX 
Debt Capital Markets 


    --  FTSE TMX Debt Capital Markets will be one of the leading global
        fixed income ETF index providers
    --  Will combine TMX Datalinx's fixed income index business,
        PC-Bond, with FTSE's existing international fixed income
        business

TORONTO and LONDON, Feb. 27, 2013 /CNW/ - FTSE Group ("FTSE"), part of London 
Stock Exchange Group ("LSEG"), and TMX Group today announce that they have 
signed a definitive agreement to combine their fixed income index businesses 
in a new joint venture. FTSE TMX Debt Capital Markets will be the third 
largest fixed income exchange traded fund (ETF) index provider globally. 
Together these indices are used as benchmarks for more than C$1 trillion in 
fixed income assets.

TMX Datalinx is TMX Group's information service division. Its fixed income 
index business, PC-Bond, will be combined with FTSE's existing international 
fixed income index business upon completion. PC-Bond is the leading provider 
of fixed income indices in Canada; FTSE is a leading provider of fixed income 
indices in the UK. FTSE will own a 75 per cent majority stake in the joint 
venture, with TMX Group holding a 25 per cent stake.

FTSE TMX Debt Capital Markets will build on the successful track record of 
both organisations, combining the strengths of FTSE and TMX Datalinx to 
provide innovative fixed income index and analytical products and services. 
The transaction will significantly strengthen FTSE's position in fixed income, 
the second largest asset class globally with approximately C$13.7 trillion 
invested. It will also increase FTSE's profile in North America.

For TMX Datalinx, the joint venture will enable more rapid global expansion as 
it exports its industry leading fixed income index and analytic capabilities 
by leveraging the global distribution reach of FTSE, one of the world's most 
recognised index brands.

Commenting on today's announcement Mark Makepeace, CEO of FTSE & LSEG Director 
of Information Services, said:
"The fixed income market represents a significant growth opportunity for FTSE. 
In partnering with TMX Datalinx we can quickly create the scale, quality of 
operation and global distribution necessary to be a significant player in this 
rapidly evolving part of the index industry. To accelerate our expansion into 
North America, a key growth market for us, FTSE will be establishing an office 
in Toronto."

Eric Sinclair, President TMX Datalinx and Group Head of Information Services, 
TMX Group added: 
"This transaction provides TMX Datalinx with a new global presence in the 
fixed income index business. By partnering with FTSE, we will grow the 
business globally, while continuing to serve our existing Canadian clients 
with the excellent quality index suite they trust and rely upon."

Demand for fixed income indices continues to grow rapidly driven by the need 
for multi-sourced prices, high governance standards and low cost strategies. 
FTSE TMX Debt Capital Markets will use the power of PC-Bond's fixed income 
capabilities and methodology to offer the global financial and capital markets 
community a suite of proven and valuable fixed income indices and analytics 
tools and to use this as a platform for future expansion.

In addition to holding a 25 per cent interest in the joint venture, TMX Group 
will receive C$112.2 million (£72.2 million), subject to adjustments, which 
will be funded from existing LSEG cash resources. The transaction will be 
slightly dilutive to earnings per share for TMX Group in 2013. The business, 
which will be jointly headquartered in London and Toronto, employs nine people 
and had combined pro forma revenues of C$21.3 million (£13.7 million) in 2012.

Closing is subject to customary conditions and is expected in Q2 2013.

About FTSE:
FTSE Group (FTSE) is a world-leader in the provision of global index and 
analytical solutions. FTSE calculates indices across a wide range of asset 
classes, on both a standard and custom basis. FTSE indices are used 
extensively by investors worldwide for investment analysis, performance 
measurement, asset allocation, portfolio hedging and the creation of a wide 
range of index derivatives, funds, Exchange Traded Funds (ETFs), and other 
structured products.

FTSE has built an enviable reputation for the reliability and accuracy of our 
indices and related data services. FTSE has a long tradition of listening and 
responding to the market so that it is at the forefront of developing new 
approaches to index design, many of which are now accepted as the market 
standard. FTSE prides itself in continuing to invest significant resource in 
researching and developing new index solutions.

The foundation for FTSE's global, regional, country and sector indices is the 
FTSE global equity universe, which covers over 7,400 securities in 47 
different countries and captures 98% of the world's investable market 
capitalization. FTSE's flagship global benchmark, the FTSE All-World, is used 
by investors worldwide to structure and benchmark their international equity 
portfolios.

Exchanges around the world have chosen FTSE to calculate their domestic 
indices. These include ATHEX, Bolsas y Mercados Españoles, Borsa Italiana, 
Bursa Malaysia, Casablanca SE, Cyprus Stock Exchange, IDX, JSE, LSE, NASDAQ 
Dubai, NYSE Euronext, PSE, SGX, Stock Exchange of Thailand and TWSE. In 
addition, FTSE works with a variety of companies and associations to deliver 
innovative index solutions which provide the market with fresh opportunities.

FTSE is an independent company owned by the London Stock Exchange Group.

For more information visit www.ftse.com

About TMX Group (TSX:X): 
TMX Group's key subsidiaries operate cash and derivative markets and 
clearinghouses for multiple asset classes including equities, fixed income and 
energy. Toronto Stock Exchange, TSX Venture Exchange, TMX Select, Alpha Group, 
The Canadian Depository for Securities, Montreal Exchange, Canadian 
Derivatives Clearing Corporation, Natural Gas Exchange, BOX Options Exchange, 
Shorcan, Shorcan Energy Brokers, Equicom and other TMX Group companies provide 
listing markets, trading markets, clearing facilities, depository services, 
data products and other services to the global financial community. TMX 
Group is headquartered in Toronto and operates offices across Canada 
(Montreal, Calgary and Vancouver), in key U.S. markets (New York, Houston, 
Boston and Chicago) as well as in London, Beijing and Sydney. For more 
information about TMX Group, visit our website at www.tmx.com. Follow TMX 
Group on Twitter at http://twitter.com/tmxgroup.

About London Stock Exchange Group:  London Stock Exchange Group (LSE.L) sits 
at the heart of the world's financial community. The Group operates a broad 
range of international equity, bond and derivatives markets, including London 
Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and 
Turquoise, offering UK and Russian derivatives trading, pan-European and US 
lit and dark equity trading. Through its markets, the Group offers 
international business unrivalled access to Europe's capital markets.

The Group is a leading developer of high performance trading platforms and 
capital markets software and also offers its customers around the world access 
and an extensive range of real-time and reference data products and 
market-leading post-trade services. The Group is also home to a world leading 
index provider FTSE, which creates and manages over 200,000 equity, bond and 
alternative asset class indices.

Headquartered in London, United Kingdom with significant operations in Italy 
and Sri Lanka, the Group employs around 1,900 people.

Further information on London Stock Exchange Group can be found at: 
http://www.londonstockexchangegroup.com/

Forward-Looking Statements

Certain information contained in this announcement may constitute 
"forward-looking statements," which can be identified by the use of terms such 
as "may", "will", "should", "expect", "anticipate", "project", "estimate", 
"intend", "continue," "target" or "believe" (or the negatives thereof) or 
other variations thereon or comparable terminology. These forward looking 
statements include matters that are not historical facts and include 
statements regarding LSEG's or TMX Group's intentions, beliefs or current 
expectations concerning, among other things, LSEG's or TMX Group's results of 
operations, financial condition, liquidity, prospects, growth and strategies. 
Due to various risks and uncertainties, actual events or results or actual 
performance of LSEG or TMX Group, as the case may be, may differ materially 
from those reflected or contemplated in such forward-looking statements. As a 
result, investors should not rely on such forward-looking statements in making 
their investment decisions. No representation or warranty is made as to the 
achievement or reasonableness of and no reliance should be placed on such 
forward-looking statements.

By their nature, forward looking statements involve risk and uncertainty 
because they relate to future events and circumstances. A number of factors 
could cause actual results and developments to differ materially from those 
expressed or implied by the forward looking statements. Save as required by 
law (including without limitation applicable securities law) or, in the case 
of LSEG, by the Listing Rules of the Financial Services Authority, neither 
LSEG nor TMX Group undertakes any obligation to release publicly the results 
of any revisions to any forward looking statements in this announcement that 
may occur due to any change in its expectations or to reflect events or 
circumstances after the date of this announcement.

London Stock Exchange Group Victoria Brough (Media) +44 (0) 20 7797 1222  Paul 
Froud (Investor Relations) +44 (0) 20 7797 3322 

TMX Group Carolyn Quick (Media) 1-416-947-4597 carolyn.quick@tmx.com  Paul 
Malcolmson (Investor Relations) 1-416-947-4713 paul.malcolmson@tmx.com  

SOURCE: TMX Group Inc.

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CO: TMX Group Inc.
ST: Ontario
NI: FIN VNT 

-0- Feb/27/2013 13:00 GMT


 
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