TMX Group (X) Barclays 23rd Annual Global Financial Services Conference summary

Capital formation and issuer services

• IPO activity is showing early signs of recovery, with 78 IPOs year-to-date and a robust pipeline of 2,000 companies at various stages.

• International listings remain a focus, with boots on the ground in Australia, the U.S., and Israel, and a shift toward technology and innovation sectors.

• Recent acquisitions like Newsfile and AST Canada are aimed at expanding issuer services, targeting both public and private companies.

• The trust business is classified as high growth, with modernization and AI-driven client service initiatives underway.

• Market share in transfer agency is in the low 30s, with over 50% win rate on new mandates, positioning well for an IPO market rebound.

Trading, clearing, and post-trade innovation

• Alpha-X technology, launched in Canada, is being adapted for a U.S. ATS, with FINRA approval secured and SEC approval pending.

• Even a small U.S. market share (0.5%-1%) is seen as highly meaningful; launch is expected within 30-60 days of final approval.

• Competitive landscape in Canada is intensifying, but innovation and a 60-65% market share are maintained.

• Post-trade services are being repositioned as growth engines, with new products like CCMS and SGC launched in partnership with Clearstream.

Derivatives and data businesses

• Derivatives volumes have grown at a 10% CAGR over the past decade, with new products like CORRA driving further growth.

• Pricing is a minor revenue driver in derivatives; volume and liquidity are key, with market-making programs adjusted as liquidity grows.

• Options growth is limited by regulatory requirements for retail investors in Canada.

• VettaFi acquisition is focused on revenue growth and international expansion, leveraging TMX’s relationships in Europe and the U.K.

• Index and benchmark business drives two-thirds of VettaFi revenue, with digital distribution and analytics as a key growth focus.