TMX Group’s CEO says the company has deployed several strategic moves as it reports third quarter revenue of $418.6 million.
The Toronto-based company has focused on diversification, particularly in data and indices. Revenue is up 18 per cent from $353.8 million last year.
“We call it global insights,” John McKenzie, CEO of TMX Group told BNN Bloomberg in an Tuesday interview.
“It’s 40 per cent of the revenue of the organization now and candidly, it is also the most recurring, the most sustainable and growing at double digits. That has been part of our long-term strategy to build at least 50 per cent of the franchise in data-based businesses, and we’re almost there at this point.”
TMX Group is an integrated, multi-asset class exchange group with subsidiaries that operate cash and derivative markets and clearinghouses for equities, fixed income, and energy.
It also provides services and data products to the international financial community through the Toronto Stock Exchange, TSX Venture Exchange, TSX Trust, Montréal Exchange, TSX Alpha Exchange, Shorcan and TMX Insights.
The company launched a new suite of nuclear indices that track public companies engaged in nuclear production and energy delivery across multiple countries.
“They’re really tracking public companies that are engaged in both nuclear production and delivery of energy, and they’re not domiciled in single countries,” said McKenzie.
“It gives an investor a chance to get exposure to that industry, very much like you would invest in potentially the oil industry or the gas industry or the pipeline industry, that distinct focus on nuclear.”
The company continues to develop capabilities to list and support ETFs and expand reach across markets in Europe, Canada and the United States.
“We haven’t had a lot of traditional IPOs, but we’ve had 54 new companies come to the markets this year, and they’ve come through different means, either cross listing or up listing or graduation or structured products,” said McKenzie.
“That’s all continued to be very healthy. We’ve done over 272 new listings this year in total, including 200 ETFs now.”
