When the Boston Options Exchange and London Stock Exchange’s EDX wanted a new matching engine, they turned to Sola, a system built by TMX Group. The result: TMX owns stakes in both exchanges. But as Tom Kloet, the Canadian exchange group’s CEO, tells Colin Packham, that is not the only winner in his hand. Canada’s options market has hardly begun and, with the regulators sympathetic, there is everything to play for. And Kloet even has a word of advice for the regulators on central clearing.
FOW: How would you evaluate the size and maturity of the Canadian derivatives market?
Tom Kloet: Well, let’s take equity as a proxy. The value traded of our equity derivatives is about 40% of the value traded in the underlying cash markets. A number of major financial centres around the world typically have a value traded of equity derivatives...