TMX Capital Market: Executive Summary

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The TMX Group is a fully integrated business operating multiple exchanges in equities, derivatives, fixed income and energy as well as clearing data and trust services. TMX Capital Market, a division of the TMX Group, owns and operates Toronto Stock Exchange (TSX), the TSX Venture Exchange (TSXV), TSX Trust and TMX Private Markets. TSX Private Markets was launched in 2014 in an effort to capitalize on a significant increase in private market, non-exchange listed transactions, primarily in the oil and gas sector. TMX recognized that there was an opportunity to create a marketplace for private companies and “to facilitate capital raising and the trading of securities in the exempt market.” TMX Private Markets was created to provide transparency and organization to the active Over-the-Counter (OTC), exempt market. …show more content…

Shorcan is an inter-dealer broker that, until the creation of TSX Private Markets, was focused solely on matching buyers and sellers in the secondary bond market. As an inter-dealer broker, Shorcan maintained the anonymity of the buyers and the sellers, acted as a market aggregator, and leveraged the CDS as a clearing house. TMX aimed to leverage this same model for private securities, endeavouring to position its model similar to MLS for Real Estate but for Private Securities. TMX Private Markets would become the marketplace for communicating and facilitating transactions. Revenue would be derived from standard application and posting fees, as well as commissions on capital formation and secondary