The spectre of competition or merger between Canada's equity and derivatives exchanges loomed last week as Toronto Stock Exchange (TSX) vowed to enter the derivatives arena, previously the sole preserve of Montréal Exchange (ME).
TSX chief executive officer Richard Nesbitt fired
the first salvo just over a week ago, saying that the Toronto exchange planned to launch a derivatives division in competition with ME once the non-compete agreement between the two markets expires in 2009. The no-compete deal was struck as part of the 1999 realignment of Canada's exchanges, whereby ME became Canada's only derivatives market and TSX took over equity trading.
But Luc Bertrand, ME president and chief executive, said in news reports last Tuesday that he is not worried about ME's...