The Toronto Stock Exchange (TSX) and the US-based International Securities Exchange (ISE) are establishing a Canadian derivatives exchange that will launch in March 2009.
TSX will have a 52% stake in the new exchange, which will be called DEX, with ISE holding the remaining 48% share.
The new marketplace will list and trade options, futures and options on futures on a range of Canadian securities.
The exchange is expected to cost CDN$25 million to set up, which will be split between TSX and ISE according to the share ownership of the new initiative.
Commenting on the exchange's move into Canada, ISE president and CEO David Krell, says: "We have seen tremendous growth in ISE's derivatives offering across the US, and we see this alliance as a first step in expanding our international footprint."
Richard Nesbitt, TSX Group's CEO, says: "With the launch of DEX, we will be offering both cash and derivatives trading, and providing maximum flexibility, to our customers."
Between now and the launch in 2009, professionals from both TSX and ISE will work on the implementation strategy. Robert Fotheringham, TSX's VP of trading and Thomas Ascher, ISE's chief strategy officer, are leading the initiative.