CANADIAN EXCHANGE GROUP TECHNOLOGY TO POWER LONDON DERIVATIVES MARKET

Posted March 10, 2009

LONDON – London Stock Exchange (LSE) Group and TMX Group Inc. [the parent company of the Toronto Stock Exchange, the Montréal Exchange and other venues] have partnered to develop EDX London, the LSE’s equity derivatives business.

Under the partnership, the LSE is licensing the use of SOLA Trading, a derivatives trading technology developed by the Montréal Exchange. TMX Group Inc. is also negotiating to acquire a minority stake in EDX London.

“TMX is very proud of the SOLA technology and we are pleased that London Stock Exchange Group has chosen the platform for its derivatives businesses,” says Thomas Kloet, Chief Executive Officer, TMX. “We are also very excited about the opportunity to participate in the growth and development of the European derivatives market.” 

EDX London is scheduled to move onto the SOLA technology in November and expects the technology to lower latency, improve functionality and provide new opportunities for users to develop trading strategies and broaden their direct access services. EDX London provides trading and clearing services in Nordic and Russian equity and fixed-income derivatives.

“The use of SOLA will give the LSE a state-of-the art, proven derivatives trading platform, significantly increasing our ability to develop our derivatives markets,” says Clara Furse, Chief Executive of the LSE Group. “Moreover, our partnership with TMX offers exciting scope for developing new products, building on our recent success with our highly liquid Russian derivatives market.”