TMX exec pitches stock exchange merger to PDAC

Merging the Toronto and London stock exchanges will give mining companies greater visibility and is necessary for the exchanges to be competitive, says a senior executive at TMX Group. Canadian Press reports:

A senior executive at the TMX Group says the merger between the operators of the Toronto and London stock exchanges will give Canadian miners greater visibility on the world stage and more investment opportunities, The Canadian Press reported.

Speaking at the Prospectors and Developers Association of Canada’s convention, Kevan Cowan, head of equities at TSX Markets, said Monday that consolidation in the exchange industry is necessary to compete.

He pointed out that the TSX Venture Exchange, where 18 per cent of the company’s listed on the Toronto Stock Exchange started life as public companies, would not exist if it weren’t for consolidation.

Cowan said the merger will ensure the TSX (TSX:X) will remain the global leader for exchanges in terms of the number of mining companies listed.

“This is not a merger of the operating exchanges,” he said, dismissing the idea that the TSX Venture could be swallowed up by LSE’s AIM junior exchange.