Amid all the talk about global exchanges consolidating to cope with competition, it's easy to overlook the fact that TMX Group Inc. continues to boost volumes on its markets.
TMX's Toronto Stock Exchange has posted a 23 per cent increase so far in 2011 compared to the first two months of 2010. Volume on the smaller-cap TSX Venture Exchange is up year to date as well .
And the Montreal Exchange derivatives business is setting records, posting a new monthly high for trading volume in February, all the more impressive given the fact that it's the shortest month of the year.
Gas trading and clearing on NGX rose 20 per cent in February.
For equities at least, it's the story of exchange life these days. Volumes continue to rise, adding stress on exchange systems, while pricing drops because of competition. Revenue-wise, it's usually a wash for companies like TMX .
The real key for TMX investors is seeing the gains in the other businesses, which in the absence of pricing power on equity trades have to become the growth drivers for the company. So seeing the bigger numbers in energy and derivative volumes is a big positive for the company.