TMX reputedly in talks with Direct Edge as Maple deal clears regulatory hurdles

TMX reputedly in talks with Direct Edge as Maple deal clears regulatory hurdles

With national regulators giving the final nod of approval to the $3.8 billion acquisition of Canada's TMX by the Maple consortium, the soon-to-be-merged group is already looking further afield, with a mooted take-over of US electronic exchange Direct Edge under review.

Approval of Maple's proposed takeover of TMX by regulators in British Columbia and Alberta late Wednesday, concludes a painstaking, year-long review process for the two groups, which kicked off following the aborted merger between TMX and the London Stock Exchange.

The acquisition will create an integrated national exchange and clearing group, which brings under one roof the rival Alpha exchange, TMX and the Canadian Securities Depository, and control of 85% of all stock trading activity in the country.

Tom Kloet, chief executive officer, TMX Group says: "Following completion of the transaction, TMX Group will be a stronger organisation, able to introduce new innovation and efficiency to the Canadian market, and to grow, compete and win more effectively on the global stage."

The Canadian group has already set its sights across the border and has begun exploratory talks with Direct Edge says the Wall Street Journal, citing "people familiar with the matter". The fourth-largest stock exchange operator in the US, Direct Edge hired Bank of America Merrill Lynch and Wells Fargo at the turn of the year to look at its options, including the potential for an IPO.

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