TMX Group Gains Share of Canada Trading as Alpha Declines

TMX Group Inc. extended its control of the Canadian market for equities trading in December after taking market share from bank-owned Alpha Group and other alternative trading platforms.

TMX, the Toronto Stock Exchange owner that’s facing a C$3.73 billion ($3.66 billion) takeover bid from a group of Canadian banks and pension funds, had 71 percent of the market across its three venues last month, up from 65 percent in November, according to monthly statistics from the Investment Industry Regulatory Organization of Canada.

Alpha, whose owners include Canada’s six largest banks, had 15 percent of the market by number of shares traded, down from 20 percent in November, IIROC said. Alpha halted trading for a day last month due to technical issues.

The market share for CNSX Markets Inc.’s Pure Trading platform also fell to 2.8 percent in December, from 4.3 percent in November. TMX numbers include the Toronto Stock Exchange, TSX Venture Exchange and TMX Select, the exchange owner’s alternative trading system that began in July.

TMX’s market share slipped from a year earlier, when the Toronto Stock Exchange and TSX Venture Exchange had 72 percent of the market. TMX, which had 99 percent of stock trading at the start of 2007, has seen its share decline with the emergence of alternative trading systems.

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