New Canadian derivatives exchange to begin operations in 2009
TSX Group CEO Richard Nesbitt and International Securities Exchange (ISE) president and CEO David Krell yesterday announced the creation of DEX, a new derivatives exchange which is scheduled to begin operations in March 2009 and will list and trade options, futures and options on futures on a range of Canadian securities.
With a specific order book and trading rules, DEX will complement TSX Group's exchanges to provide investors with a full range of trading products and strategies.
"We are excited to announce this new exchange with ISE," says Nesbitt. "With the launch of DEX, we will be offering both cash and derivatives trading, and providing maximum flexiblity to our customers." He adds, "This is truly an exciting time for our markets and we look forward to the launch of DEX in 2009."
"This venture with the TSX Group will create a new platform to expand the trading alternatives available for investors in Canadian securities and will clearly benefit the Canadian market," says David Krell. "We believe this opportunity will bring additional value to our members and shareholders as well," he adds.
Between now and the 2009 launch, professionals from both TSX Group and ISE will work on the implementation strategy. Leading the initiative are Robert Fotheringham, TSX Group's vice-president of trading, and Thomas Ascher, ISE's chief strategy officer.
Between now and March 2009 the anticipated cost of setting up DEX is approximately $26 million (Canadian). The costs will be split between TSX Group and ISE according to the share ownership of the new initiative.
This binding arrangement between the two companies is subject to certain usual and customary conditions, including applicable regulatory filings and approvals, and is subject to termination in certain circumstances.