TORONTO/LONDON, Feb 9 (Reuters) - The London Stock Exchange LSE.L is to buy the owner of the Toronto Stock Exchange TMX Group X.TO in an all share deal that will create a mining-dominant exchange at a time of rising commodity prices.
Here are some facts about the two exchanges:
The London Stock Exchange began in the coffee houses of London in the 17th century. In recent years, the LSE has been fighting to claw back business lost to low-cost competitors such as Chi-X Europe and Bats Europe, which have grown quickly off the back of high-volume trading firms.
The exchange in 2010 bought an alternative trading platform called Turquoise, seeking to reinvent itself as a tech-savvy firm and compete more effectively with its new competitors.
It competes globally with NYSE Euronext, Deutsche Boerse and Nasdaq.
* 1698: John Castaing began issuing a list of stock and commodity prices called “The Course of the Exchange and other things” at Jonathan’s coffee-house.
* 1761: A group of 150 stock brokers and jobbers formed a club at Jonathan’s to buy and sell shares.
* 1801: On March 3, the business reopened under a formal membership subscription basis. The first regulated exchange came into existence in London, and the modern Stock Exchange was born.
* 1973: The 11 British and Irish regional exchanges amalgamated with the London exchange.
* 1986: Deregulation of the market, known as “Big Bang”: Ownership of member firms by an outside corporation was allowed; all firms became broker/dealers able to operate in a dual capacity; minimum scales of commission were abolished; individual members ceased to have voting rights; trading moved from being conducted face-to-face on a market floor to being performed via computer and telephone from separate dealing rooms; the Exchange became a private limited company under the Companies Act 1985.
* 1991: Trading name became The London Stock Exchange.
* 2000: Shareholders voted to become a public limited company, London Stock Exchange plc.
* 2001: Exchange listed on its own Main Market in July.
* 2003: Created EDX London, an international equity derivatives business, in partnership with OM Group. The exchange acquired Proquote Limited, a new generation supplier of real-time market data and trading systems.
* 2007: The London Stock Exchange merged with Borsa Italiana, creating London Stock Exchange Group. (Source: London Stock Exchange website)
The TMX Group Inc operates cash and derivative markets for multiple asset classes including equities, fixed income and energy through its key subsidiaries. Toronto Stock Exchange, TSX Venture Exchange, Montreal Exchange, Natural Gas Exchange, Boston Options Exchange, Shorcan, Equicom and other TMX Group companies provide trading markets, clearing facilities, data products and other services to the global financial community. TMX Group is headquartered in Toronto with offices in Montreal, Calgary and Vancouver.
* 1852: Toronto Stock Exchange officially founded on Oct. 25, 1852, through a resolution passed by 24 men gathered at The Masonic Hall in Toronto. The trading list consisted of 18 securities.
* 1977: Toronto Stock Exchange launched the world’s first Computer Assisted Trading System. The TSE 300 Composite Index was launched.
* 1987: Toronto 35 Index created.
* 1997: Toronto Stock Exchange trading floor was closed and the exchange became the largest stock exchange in North America to choose a floorless, virtual trading environment.
* 2000: Toronto Stock Exchange Inc became a for-profit company.
* 2001: Toronto Stock Exchange completes acquisition of Canadian Venture Exchange, renamed the TSX Venture Exchange in 2002. S&P/CDNX Index was launched on Dec. 10. Index renamed S&P/TSX Venture Composite Index in May 2002.
* 2002: Standard and Poor’s took over management of Toronto Stock Exchange 300 Composite Index on May 1. It was renamed the S&P/TSX Composite Index. In September, TSX filed a preliminary prospectus for an initial public offering of its common shares.
* 2005: In December, for the first time, trading on Toronto Stock Exchange topped $1 trillion for the year.
* 2007: On December 10th, Montreal Exchange Inc and TSX Group Inc announced an agreement to combine organizations to create TMX Group Inc.
* 2008: May 1, the combination of TSX Group and Montreal Exchange was completed.
* 2009: May 7, TMX Group acquires a 19.9 per cent stake in EDX London Limited, the London Stock Exchange’s equity derivatives business.
* 2010: Feb. 10, Toronto Stock Exchange and TSX Venture Exchange signed a Memorandum of Understand with the Tel Aviv Stock Exchange. Sept. 20, TMX Group announced that Toronto Stock Exchange and TSX Venture Exchange signed a Memorandum of Understand with the Oslo Bors.
Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.
Sign up for a free trial of our full service at https://www.breakingviews.com/trial and follow us on Twitter @Breakingviews and at www.breakingviews.com. All opinions expressed are those of the authors.