TMX Group is a step ahead of Jim Prentice and has already accounted for some his concerns about its proposed merger with London Stock Exchange Group.
In a speech Tuesday Mr. Prentice said he wants assurances on three fronts: that businesses will still have access to domestic and global capital; that Canada will maintain regulation over its markets; and that major Canadian cities benefit from the deal, rather than lose prominence, as the National Post first reported. But TMX's merger agreement already covers some of these points.
With regard to regulation, the agreement explicitly states that the Ontario Securities Commission will keep its power over the TSX, and that any change of ownership must be approved by the OSC.
As for the roles of Montreal, Toronto and Calgary, the merger agreement explicitly details the operations of each (which have already been reported.) To recap, Montreal will be the head of global derivatives, Toronto the head of primary markets and Calgary the head of global energy.
However, Mr. Prentice's other request, continued access to domestic and global capital, can be hard to assure because the markets are so volatile. But it's likely that TMX would argue access to capital will only get worse if the merger doesn't go through and TMX becomes an even smaller player on the global stage.Report Typo/Error