The Caisse de dépôt et placement du Québec considers the proposed merger between the Toronto Stock Exchange and the Montreal Exchange “interesting” and supports a proposal for a public hearing on the deal.
“As a shareholder, we want to know whether the proposed merger is ultimately viable, given the emergence of many competitive platforms in the equity markets and the increasing share represented by Canadian companies interlisted on U.S. exchanges,” says Henri-Paul Rousseau, president and CEO of the Caisse. “This is especially important since the market for standardized derivatives is quite likely to grow significantly in the years to come.”
Moreover, the Caisse has questions about the governance principles and rules that will apply to the new entity. It also wants to know what the proponents’ intentions are regarding development of operations in Montreal.
“Over the years the Montreal Exchange has developed leading-edge derivatives expertise,” says Rousseau. “We would like to know what the Toronto Stock Exchange’s intentions are in this regard before we take our analysis further. A public debate is needed.”
The Caisse owns nearly 8% of the Montreal Exchange.
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