The TMX Merger/Takeover

One concern is that this deal may undermine our ability to regulate financial markets.

If the Canadian exchanges become majority owned in the UK, and if the Canada – EU deal is ratified with a Chapter 11 like investment clause, then we leave ourselves open to sanctions if and when we impose regulations which result in a loss of expected profits.

Why does this matter? More and more of the activity on exchanges is trading of derivatives of all kinds as opposed to plain jane equities.  Gambling in futures, options and swaps of shares should be regulated in the public interest.

If we end up with global exchanges, who is going to regulate the markets?

3 comments

  • How about a link to what you’re writing about?

  • Diane Francis was railing against the merger on CBC Radio here in Toronto this morning. After recovering from listening to the sheer gall and hypocrisy of this free-market hack calling for government intervention to protect Canada’s financial sector, listeners then had to hear her alternative to the merger: a TSX takeover of London as a stepping stone for a Toronto/Canadian-based world domination of resource and mineral exchanges.

    I hope those of us on the Left are able to make the case for opposing the merger without having anything to do with these megalomaniacal ambitions of Canadian business and finance.

  • Most underestimate the vast financial resources that we have here in Canada. To merge the TSX with the LSE is “one giant step” to an esculation in food prices. The commodity traders will make a killing on market manipulation and food and other commodity prices will spike dramatically. The TSX and it’s venture exchange are very well respected all over the world. Having “home grown” venues for fledgling start up companies to list is extremely important to our economy and will become more so as the US and other markets ascribe to Capital Market Liberalization policy “more and more”, and continue to engage in corruption. We have already scene what happens when financial markets are poorly regulated, see Eygpt, Tunasia and third world countries alike. Hello! Write your MPP and MP now and say no to corrupt financial markets!

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