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
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
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.
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
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
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:
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
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 email@example.com Paul
Malcolmson (Investor Relations) 1-416-947-4713 firstname.lastname@example.org
SOURCE: TMX Group Inc.
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-0- Feb/27/2013 13:00 GMT
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