You're watching...
TMX Group CEO Tom Kloet on the impact of regulatory uncertainties on the markets and economy.
Also in this playlist...
Auto-advance: ON
Auto-advance
This transcript is automatically generated
Right the parent company of the Toronto Stock Exchange TMX group is joining forces with the maple group in a move that is enabling the company to expand its product offering.
Tom clos -- is a CEO of TMX group he joins us now -- may first on fox interview.
Come what a pleasure to see -- -- I haven't -- American by the way I am they brought in an outsider in order runner coming.
There -- a lot of similarities between -- US but some very distinct differences.
And one of them involves the markets now.
You are the main equity and clearing facility you you have everything in one.
-- right.
We also own and operate the country's futures and options market that -- as well I -- clearing house must make it a lot easier to see what's going on in the whole trading feel well we think it -- Thus to provide a comprehensive suite of services to our clients and the products and services we can offer that much better -- we actually have the whole -- -- the market hasn't brought prices down for your clients and customers.
Well in in room with respect to our equity markets are prices have come down roughly 85 to 90% cents.
We originally listed the -- I -- -- I ask because that's the whole point right we wanted to become less expensive and become a free market opportunity for people and at least enable you guys to make money the same time but.
Here in the US every time an exchange like the NASDAQ or the New York Stock Exchange tries to make any kind of merger or acquisition that.
It's usually reject completely.
Well I think what what we've looked at is bringing together candidates financial markets under one institution.
So we can really have a very strong market now there are competitors we have alternative trading systems that are owned and operated by other amenities.
And a low -- entry for new and organizations to come to Canada.
But the reality is that we think we -- the most comprehensive services let's talk about how our regulations might affect your -- Dodd-Frank is is gonna have worldwide implications how will it affect you directly your your -- -- it's really important to us in fact we've it we have spent personalized time Washington last year as as Dodd-Frank they accept your input.
Moved for sure the CFTC particularly was very accepting more input.
It impacts us in many important ways because as our.
Institutions -- Interest rate swaps are gonna have to be bilaterally clear.
And -- Malta last week split bilaterally -- that's important and we believe that kind of comprehensive risk management is important.
For candidates important for financial Chris -- giving it a thumbs up at least in that area well I am in terms -- concept.
The key is how -- the rules actually gonna impact the institutions and we're still waiting for all the rules to be written there were roughly 2200 pages of legislation.
Without rules that doubles and rules of course isn't it though naturally going to be more straight you have more clearing involved it's gonna cost more right.
What about it increased costs for the traders we don't think so.
We think as products come on to multi lateral -- -- that will actually be able offer relief says as we look at the analysis of those.
Of the risk of those products against the listed derivatives that we what -- is important you think Dodd-Frank might --
