TMX announced earlier today that it had acquired the assets of ir2020, an online shareholder data and targeting solution provider.

We’re excited to bring this product into our offering for public companies; ir2020 offers a unique and powerful interface, giving investor relations (IR) professionals deeper insight into their shareholder base, thereby enhancing relationship management with existing and potential investors.

The ir2020 product has six key elements to support the needs of IR professionals:

• IR Workbench – view institutional shareholder data and run powerful data queries
• Contacts – manage relationships with institutional investors and other contacts
• Events – plan, track and invite contacts to IR events
• Targets – manage target lists, track actions and measure outcomes
• Activity Reporting – generate reports on activity and outreach
• Mobile – review contact and event details while on the go

We remain committed to supporting the growth and success of our public companies by providing leading-edge products and services.

This latest addition is a great complement to existing products like TSX InfoSuite, Anonymous Trading Reports and Historical Data Access. These tools provide advanced analytics to help companies better understand the key factors impacting their share price, information on their shareholder base and how it is evolving, and the performance of peers and market indicators to help them achieve their investor relations and corporate goals.

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Yesterday we held a Market Close Ceremony at our Calgary office to close the trading day on TSX Venture Exchange and Toronto Stock Exchange.  The ceremony was another opportunity for us to celebrate the great successes of Capital Pool Company (CPC) program and its contributions to the marketplace.  It was especially fitting to hold this ceremony in the home town of CPCs.

Twenty-five years ago, the Alberta Securities Commission established the predecessor of the CPCs, the Junior Capital Pool Program.  There is no doubt that it has become an increasingly important component of our capital markets since that time.

• Over 2200 CPCs have been created and over 80% have completed their Qualifying Transaction (QT)
• As of October 31, 2011, former CPCs accounted for over $67 billion in market capitalization on our markets
• 97 former CPCs are currently listed on TSX… 16 are now in the S&P/TSX Composite Index and one of these is in the S&P/TSX 60 Index
• In the last 10 years, former CPCs have raised over $21 billion on TSX

CPC founders and investors have experienced some significant returns over the years.  Consider the average share price performance, measured at various steps in the process, for CPCs that completed their QT in recent years*:

• 339% appreciation from seed investment to current value
• 118% appreciation from CPC to current value
• 42% average share price appreciation since the QT

I believe these numbers speak for themselves but if you need further evidence of the program’s success, just look at its reach.  What was once a program localized to Calgary-based founders and smaller deals, is now a program with a strong following across Canada and spreading internationally.  The reach is broader and the average deal size has been increasing.

The CPC Program is truly a great Canadian innovation and one which has contributed much to our capital markets and the economy; it is 25 years “young” and has much to offer in the years to come.

All figures as at October 31, 2011 unless stated otherwise
* QTs took place between 2007 and September 2011. Historical or average returns are not predictors of future or individual performance.

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Darrin Hopkins has built a career on the merits of the Capital Pool Company (CPC) program and is widely known as a leading expert on CPCs.  Working from the Macquarie Private Wealth office in Calgary, Alberta, Hopkins and his partner, Tony Kinnon, have done over 100 CPCs in more than 17 years.

Asked why he’s so committed to the CPC program and why he would recommend it to others, Hopkins’ answer is concise: “It’s proven. It works.”

He says it’s unquestionable that the CPC program works, is needed, and is used by issuers in Canada.  Increasingly, Hopkins is also seeing U.S. companies using the program: he sees this as a natural evolution – from local to truly international – for a program that has continued to expand geographically from its Calgary roots.

Case in point: Sandspring Resources Ltd. (TSXV: SSP), a Colorado-based company with gold mining assets in Guyana.  This former CPC has had several rounds of financing and is now a widely held company with a market cap of roughly $180 million.

Hopkins has been closely involved with CPCs for much of their 25-year history and has witnessed the growing awareness and reputation of the program.

“People can now point to it” he says. “It’s a program with a clear track record of success.”  He goes on to say that the quality and suitability of the program is no longer questioned and there is great confidence in it:

It’s seen as an efficient way to go public, a program with rules and regulations that ensure it’s held in high regulatory regard, and it’s run by an exchange that is recognized and respected around the world.”

As the awareness and reputation of the program have grown, so has its relative value.  Looking back, Hopkins has watched the assets in the program get larger and larger each year, shifting from local assets to world-class.  In the past, it was seen as venture capital pool.  Today, he says, “it’s looked at as an efficient entry vehicle to the capital markets.”

Perhaps this shift is yet another step in the evolution of this innovative Canadian program.

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TSX Venture Exchange is celebrating the 25th anniversary of the Capital Pool Company (CPC) program.

The CPC program provides an alternative, two-step introduction to listing on TSXV. Through the program, CPC founders with financial markets experience raise a pool of capital that is listed on the Exchange as a CPC. The CPC founders then seek out entrepreneurs with growth and development stage companies. Once a fit is found between the two, they complete a business combination known as a Qualifying Transaction (QT). Once a CPC has completed its QT, it forms a regular company listed on TSXV.

Since its inception in 1986, over 2,200 CPCs have listed on TSXV and its predecessor exchanges.  Many of these companies subsequently graduated to TSX — one of these companies, Silver Wheaton Corp., has a market capitalization of roughly $10 billion and is in the S&P/TSX 60 Index.  Many will be impressed to hear that, as of September 30, 2011, former CPCs accounted for over $60 billion in market capitalization on our markets.

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Members of our team are in Beijing to open a representative office for Toronto Stock Exchange and TSX Venture Exchange.  Canada’s Minister of Finance, the Honourable Jim Flaherty P.C., M.P., participated in the office’s opening earlier today.

Our international role is ever-growing and this new office follows the success of TMX Group’s international office in London, U.K. which opened in early 2011.  The Beijing office is our first office in Asia.  We are confident that both nations, China and Canada, will have much to gain from this endeavour.

The opening of our Beijing office is a significant milestone for TMX Group, TSX, and TSXV.  Our efforts in China will focus primarily on advancing Canada’s capital markets and the business of our equity exchanges.  The office will also provide the ability to offer enhanced services to new and existing clients in China.  As opportunities arise in China, it is important to have a presence on the ground to properly evaluate these opportunities.

Minister Flaherty has commented that, “The opening of the TSX office in Beijing demonstrates the opportunities that Canadian businesses see to further their relationship with the People’s Republic of China. It creates an important bridge between our respective capital markets and brings our market participants closer together.”

We echo his comments and believe that TSX and TSXV are an important gateway between China and Canada… between our economies, businesses, and people.  Our exchanges offer opportunity for Chinese investors and access to capital for Chinese companies looking to grow and to expand.

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TMX Group is a cornerstone of Canada’s capital markets and an important catalyst for national economic activity, capital formation and foreign investment. Its progress and success have contributed to Canada’s economic growth.

TMX Group and the investors in Maple – 13 of Canada’s leading pension funds and financial institutions – have developed a plan that builds on our capital markets’ strong foundations to create an integrated exchange and clearing group that will deliver value and tangible benefits to all users and market participants.

The opportunity before us is clear – and the benefits far-reaching:

• An integrated exchange model that incorporates the CDS clearing house and the Alpha alternative trading system will deliver cost savings and operational efficiency to all market participants. This will lead to a more efficient market, with globally competitive pricing, which will help attract new investment to Canada’s markets, repatriate inter-listed company trading activity and contribute to continued growth in a highly competitive global marketplace.
• The new model is expected to attract greater investment and activity to Canada’s marketplaces, which will create important economies of scale. New investment in Canada will lead to greater opportunity for Canada’s public companies to raise capital for infrastructure, jobs, innovation and growth.
• Overall, TMX Group’s strong competitive position in the global exchange sector, and our ability to forge new partnerships and alliances and pursue acquisitions, will be enhanced.

To realize these and other benefits, TMX Group and the investors in Maple have developed an approach that balances a clear vision for the future with the need to operate transparent and independent markets that serve the needs of all participants.

• TMX Group will continue to act in the best interests of the Canadian capital markets. Maple’s name, following the transaction, will incorporate the “TMX” brand, and the new Board will have an independent chair and at least 50% independent directors as well as representation from Canada’s independent dealer community. The governance structure also includes a minimum number of directors resident in Quebec as well as directors with specific expertise in derivatives and in Canada’s public venture markets.
• We have made a clear commitment to open-access to all TMX Group operated markets for all Canadian market participants. We are also committed to maintaining existing regional headquarters and presence, which we intend to grow significantly, such as Montreal as the national centre for derivatives, Toronto for our equities business, Calgary for energy and Vancouver and Calgary for our venture equity business.
• There will be equitable pricing for all products and services – with all participants paying the same price for clearing, depository and settlement services provided by CDS. Importantly, all fees currently subject to regulatory review will continue to be subject to the same scrutiny and approval process. Additional definitive information on pricing policy for CDS will be made available in the weeks ahead.
• We have committed to retaining the 10% ownership limits on TMX Group, which together with the addition of standstill agreements for the bank-owned dealers, will prevent control of TMX Group by any sub-group of shareholders.
• We are committed to continuing to abide by all of the existing recognition orders, policies and decisions of all of the regulators that currently oversee TMX Group and the exchanges it operates, as well as new commitments to ensure TMX Group business and regulatory decisions are in keeping with the public interest and are not unduly influenced by any one segment of capital markets participants.

This is a unique opportunity to enhance TMX Group’s global competitiveness and strengthen our financial markets.

Ours is a proposal that serves Canadian capital markets. We encourage you to learn more about our proposal and hope you will support this important and beneficial transaction.

Sincerely,

Tom Kloet
Chief Executive Officer
TMX Group

Luc Bertrand
Maple Group Acquisition Corporation

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Yesterday we were thrilled to announce that as of September 30, TSX and TSXV together had more new listings in 2011 than any other exchange group in the world.  The ranking is part of a recently-released report from the World Federation of Exchanges.

With 318 new listings as of September 30, 2011, including 32 graduates from TSXV to TSX, our exchange group ranked ahead of Shenzhen Stock Exchange, which was second with 201 new listings year-to-date.  Deutsche Börse was third in the tally with 176 new listings.

This is the third straight year that our equity exchanges have led global exchanges in the number of new listings and we are proud to support companies of all sizes and across all sectors as they access capital for their business. We look forward to playing a role in fostering the growth and success of these newly listed companies.

Also of note, is that as of September 30 our exchanges rank second in the world by number of listings, seventh by market capitalization, and seventh by equity capital raised.

There’s no doubt that we’re proud to be a leader among global exchanges and it’s a position we hope our listed companies are equally proud of.  “Listed on TSX” are words that matter: they are the mark of a leading exchange group… and a marketplace of integrity, liquidity and opportunity for investors and listed companies.

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Recently, I was asked for a venture market perspective on the mining sector and I’d like to share some of those thoughts here, with readers of Exchange.

Combined, our exchanges are the #1 venue for new listings in mining and we’ve held this position for over five years in a row.  TSXV and TSX now list over half of the world’s public mining companies.  Last year alone, a third of all public equity capital raised for mining companies was raised by issuers on our markets.  Of this capital, we saw equal amounts raised for TSXV- and TSX-listed companies, with over $4 billion raised on each market in 2010.

While I maintain our marketplace is healthy and vibrant, I would be remiss not to mention that it is not immune from the ebbs and flows of global markets.  Market capitalization is down significantly year-to-date across all sectors, including mining, but there are some more positive indicators I’d like to bring foward.

While our mining sector market capitalization is down from the record levels of 2010, we continue to show levels far above pre-2010 levels.  The market has retained much of its increased valuation.  Liquidity is relatively high, mining stocks are seeing greater volume than in previous years, and we continue to see many new listings in the mining sector including another 118 so far this year.

Perhaps most significant is the strength in financings.  So far this year, mining financings on TSXV have far exceeded numbers for the same period in 2010.  Just over $2.8 billion was raised by September 2010; that same period showed financings of over $5.1 billion this year.  At this rate we may see a record year for mining financing on TSXV that will exceed the almost $5.3 billion raised in 2010.
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The Carbon Disclosure Project (CDP) is of particular interest to us at TMX Group.  1000s of organizations from the world’s major economies measure and disclose their greenhouse gas emissions and climate change strategies through the annual CDP project, which focuses on emissions, emissions reduction targets, and risks and opportunities associated with climate change.

Since 2008, TMX has responded to the annual CDP survey and our results have steadily improved each year.  This year, we are proud to announce that TMX was selected to be included in the CDP Carbon Disclosure Leadership Index. The index is comprised of the top 20 companies, companies that have demonstrated good internal data management practices for understanding greenhouse gas emissions and have shown a strong awareness of the business issues related to climate change including climate-related risks and opportunities.

TMX has been involved in several initiatives to address climate change in Canada:

• We are proud to list over 130 clean technology and renewable power companies on TSX and TSXV*, more than any other exchange group in the world. In 2010, these companies raised over $1.3 billion on our markets, and contributed to energy grid efficiency, hybrid and electric vehicle improvements, and renewable power generation, all of which are have a substantial impact on carbon outputs in our society.
• To help support greater visibility of this important sector, TMX was involved in the launch of the S&P/TSX Clean Technology Index in 2010.
• Montreal Climate Exchange (MCeX) is a carbon market that was launched in 2008 and offers a platform for companies to explore and understand the issues and costs associated with carbon trading.
• TMX actively engaged with the federal government as they sought input in the development of the Regulatory Framework for Air Emissions.
• This year, TSX also launched a set of training courses to help listed companies understand best practices about environmental and social issues.

We are extremely proud of our achievements to-date and the efforts made by all those involved. TMX will continue innovating and supporting even more initiatives related to climate change and its global impact.

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I recently returned from a successful run of the TSX Clean Technology Financing Series.  The series was part of a 3-day road show in California and was book-ended with financing events in Palo Alto and Orange County.

To build a successful series our team worked with local investors and experienced venture capitalists to identify five companies for each event.  The companies then met with four investment bankers that participated in the series, and then a fifth meeting with participating law firms who provide an overview of the tax and structural issues that a U.S. company must consider.  In connection with the event we also met with leading clean technology venture capitalists and private equity investors.  This all added up to almost 75 meetings in three days focused on the opportunity for U.S. Clean Technology companies looking to better understand TSX and TSXV as a growth platform.

This is just one example of the many events that the TSX/TSXV business development team hosts around the world each year.  Our team recognizes the role we can play in connecting growing companies with the investment bankers and advisors that can help fuel their vision with equity capital.

Finding the right organizations to support these businesses can make a tremendous difference for a company seeking to understand their growth options.  As a community within the capital markets, we – the exchanges, investment bankers, lawyers, and other advisors – can work with a company to help bring them to the market.  As a public company they can access capital to support their growing business and its continued success.  Our team is thrilled to play a role in the present and future of these dynamic companies.

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