November 16, 2015 / 4:48 PM / in 3 years

TMX to introduce new mutual funds trading platform

TORONTO, Nov 16 (Reuters) - TMX Group said on Monday it is expanding its offerings to service the mutual fund industry, in the move that comes close on the heels of a similar announcement from rival Canadian exchange operator Aequitas Innovations Inc.

The plan, first reported by Reuters earlier this month, will see the new TSX NAVex system racing to compete against Aequitas’ new PTF Connect platform, which is set to begin operating in the first quarter of 2016.

Toronto-based TMX, which operates the dominant Toronto Stock Exchange and the smaller TSX Venture Exchange, said NAVex will facilitate the trading of mutual funds using its own equities trading, clearing and settlement infrastructure.

TMX said its platform is expected to launch in the second quarter of 2016 subject to industry readiness. The exchange operator added that it has created a working group that taps representatives from a number of fund companies to ensure that the product meets industry-wide needs.

The move comes as the investment industry is under pressure from Canadian regulators to be more transparent on fees, forcing fund companies to make their products more competitive.

At the same time, as trading fees in existing markets such as stocks are being squeezed, exchange operators are looking to launch new products to boost revenue. (Reporting by Euan Rocha, editing by G Crosse)

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