TSX Group Inc. and International Securities Exchange Holdings, Inc. (ISE) today announced the completion of a shareholders agreement for CDEX Inc. (CDEX), which will operate DEX, a new derivatives exchange scheduled to begin operation in March 2009.
CDEX will initially be owned 52% by TSX Group and 48% by ISE Ventures LLC, a wholly owned subsidiary of ISE, and will list and trade options, futures and options on futures on a range of Canadian securities. The launch of DEX will benefit the Canadian marketplace by bringing innovative derivative products and expanding the available trading alternatives.
Completion of the shareholders agreement is a significant milestone because it triggers funding by TSX and ISE of the monies needed to establish DEX and execute its initial business plan. The cost of setting up DEX is expected to be approximately $26 million Canadian and will be split between TSX and ISE according to their share ownership in the new venture.
CDEX has been incorporated under the Canada Business Corporations Act and will initially have a seven member Board of Directors, comprised of four TSX and three ISE representatives.