(June 7 – 11:50 ET) – The Toronto Stock Exchange says it has joined talks about a global trading alliance, including the New York Stock Exchange, Euronext (Paris, Amsterdam, Brussels), Tokyo, Hong Kong, Australia, Mexico and Sao Paulo.
An electronic-order matching system would be introduced linking the exchanges in a round-the-clock global equity market. The market would be launched first with large, international liquid stocks, before extending to smaller issues. The TSE says it and the NYSE will also explore a bilateral alliance.
“The TSE has decided to pursue the GEM alliance because it offers benefits that best meet the interests of Canada, the TSE, its customers and its shareholders,” said Barbara Stymiest, president and CEO of the TSE. “GEM offers a global solution that is compatible with our market structure, technology, clearing and settlement protocol and regulatory environment.”
Richard Grasso, chairman and CEO of the NYSE said, “The agreement that we are formulating will strengthen and globalize our markets within North America as well as between time zones. It will allow the GEM Exchanges to define the business and operating template. It is an ambitious and exciting challenge”
Over the coming months, the GEM alliance partners will work together to draft the terms of their agreement. These discussions will include consultation with the regulators and other stakeholders in North America and globally.
-James Langton