London Stock Exchange CEO Xavier Rolet, left, and TMX Group CEO Tom Kloet speak to the media at the TMX Broadcast centreMARK BLINCH/Reuters
TMX Group Inc. , the operator of the Toronto Stock Exchange, on Friday reported a 13-per-cent rise in quarterly profit and said it filed applications with Canadian provincial regulators for approval of its $3-billion tie-up with the London Stock Exchange.
The two exchanges filed with securities commissions in Ontario, Quebec, Alberta and British Columbia. Last month, TMX and LSE filed its application with the federal government under the Investment Canada Act.
First-quarter profit rose to $64.3-million, or 84 cents a share, up from $56.7-million, or 77 cents, a year earlier, helped by higher revenue and trading volumes.
On an adjusted basis, TMX earned 97 cents a share, compared with 77 cents a share, a year earlier.
Revenue for TMX, which also operates the TSX Venture Exchange for small-capitalization companies and the Montreal Exchange derivatives market, rose 17 per cent to $174.7-million.
Total financing for the TSX rose 18 per cent from the first three months in 2010, and 97 per cent for the TSX Venture Exchange. Trading volumes also rose 20 per cent on the TSX and 64 per cent on the Venture Exchange.
All told, there were 91 new listings in the first three months of 2011, including 67 initial public offerings.
For the quarter, the company said merger related costs during the first quarter was $8.3 million.
"We have made this investment because we are convinced this merger represents an unparalleled opportunity for our company," chief executive officer Tom Kloet told analysts in a conference call, adding that the company was in the advanced stages of planning its merger special meeting.
"This is not a deal we have to do. It is a deal we want to do," said Mr. Kloet.