Canada Stock Exchanges Consolidate
TORONTO (AP) _ Canada’s four stock exchanges announced a major consolidation Monday which will make the Toronto Stock Exchange the sole market for trading in shares of blue-chip companies.
The Montreal Exchange will cede the market share it had _ about 10 percent _ and instead concentrate on futures and options trading, with Toronto transferring to Montreal its share of that growing niche market.
The Vancouver and Alberta stock exchanges will merge to create a single Canadian market for smaller companies. The Winnipeg Stock Exchange will be invited to participate in market.
The move underscored a long, slow decline in influence for the 125-year-old Montreal Exchange, the first, and for years the dominant, stock market in Canada.
The exchange president, Gerald Lacoste, told a Montreal news conference that ``we have to face reality.″
``We could not continue to justify the dual expenses″ of two exchanges doing the same thing, he said.
Lacoste said the changes could take 15 to 20 months to complete, and require approvals by provincial securities commissions and exchange members.
No decision has been made on where the new national junior equities market will be headquartered, although it will be based in Western Canada.
It will have around 3,000 listings, including some 2,600 from the Vancouver and Alberta exchanges and others transferred from Montreal.