Support for the Maple transaction:
The AMF must require a guarantee regarding derivatives
Montréal, November 24, 2011 – As part of public consultations on the intended acquisition of the TMX Group and other entities by the Maple Group, the Board of Trade of Metropolitan Montreal is presenting its recommendations to the Autorité des marchés financiers (AMF) today.
“Representing close to 100,000 jobs and 3,000 businesses in Montréal, the financial sector plays a highly strategic role in the city’s economy,” said Michel Leblanc, President and CEO of the Board of Trade of Metropolitan Montreal. “This transaction has attracted our attention, not only because of the critical role that the Montréal Exchange plays in the Finance Montréal cluster, but also because of the significant impact it could have on the financial system, economic development and wealth generation in Quebec’s largest city.”
“Overall, we support the intended acquisition by the Maple Group,” Mr. Leblanc said. “The group of proponents of this transaction includes leading businesses and institutions in the financial system of Quebec and Montréal, which assures us that the economic interests of Quebec and Montréal will be represented.”
“However, the minority status of proponents from Quebec requires that the AMF obtain an explicit, formal guarantee that Maple will continue to concentrate derivatives expertise in Montréal in the future,” Michel Leblanc said.
“In the past, Montréal’s financial sector has suffered major losses to Toronto, and we would like to ensure that our city’s expertise in derivatives does not suffer the same fate, but, that on the contrary, this transaction will allow it to flourish,” Michel Leblanc said.
In addition to this pivotal request, the Board of Trade has made four suggestions that should be reflected in the Maple transaction and that the AMF should have positive, satisfactory responses to:
- Include an explicit, formal commitment to develop and promote the operations of the Maple Group located in Montréal as a centre of excellence in derivatives and related products, including fixed-income securities and OTC products.
- Ensure the location of activities related to offsetting and settlement transactions in Montréal.
- Ensure the fair representation of Quebec and Montréal on all of the organization’s governance bodies and establish a permanent committee of the Maple board of directors with a mandate that focuses on the derivatives and related products market.
- Maintain the competitiveness of our financial market and continue to offer diversified and competitive financial instruments to the city’s businesses.
You can consult the Board of Trade’s opinion as part of public consultations on the planned acquisition of the Maple Group by clicking here.
The Board of Trade of Metropolitan Montreal has some 7,000 members. Its primary mission is to represent the interests of the business community of Greater Montréal and to provide individuals, merchants, and businesses of all sizes with a variety of specialized services to help them achieve their full potential in terms of innovation, productivity and competitiveness. The Board of Trade is Quebec’s leading private economic development organization.
Interim Advisor, Media Relations
Board of Trade of Metropolitan Montreal
Tel.: 514 871-4000, ext. 4015