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By Alastair Sharp
TORONTO, Sept 29 (Reuters) - TMX Group Ltd named Lou Eccleston as its new chief executive officer, the Toronto Stock Exchange operator said on Monday, after a lengthy global search to replace retiring CEO Tom Kloet.
Eccleston left McGraw Hill Financial in July. He had most recently been president of the company’s S&P Capital IQ unit, a real-time data provider, and chairman of index unit S&P Dow Jones Indices.
Just last week, TMX and S&P Dow Jones Indices launched two new indices offering exposure to Canadian stocks with the highest yield and buyback ratios.
Eccleston has also previously worked at Thomson Reuters Corp predecessor Thomson Financial, and at Bloomberg LP. He’ll take up his new role at TMX on Nov. 3, pending work permit approvals.
Eccleston has won praise for being at the forefront of financial technology innovation, including the development of S&P Capital IQ’s data analytics offerings.
“It was clear that Lou has the right skill set, experience and proven track record to be successful in this critical role,” TMX chairman Chuck Winograd said in a statement.
TMX has struggled more than most of its global peers because of its reliance on new issues and capital-raising by the cyclical energy and mining sectors, and it recently migrated its trading platform to offer ultra-fast transaction speeds and diversified via small acquisitions and internal moves.
The company is bracing for the arrival of Aequitas Innovations Inc, an upstart competitor seeking to win over institutional investors with an aggressive stance against high-frequency trading (HFT).
Along with the Toronto bourse, the company also owns the Montreal derivatives exchange and the small-cap TSX Venture Exchange, clearing and depositary services.
The choice of Eccleston brings in a face from outside TMX’s ownership circle, a group of Canadian financial institutions who in 2012 thwarted a rival bid from the London Stock Exchange .
Current CEO Kloet was planning to retire in August, but TMX extended his contract by two months as its search stretched on. (Reporting by Alastair Sharp; Editing by David Gregorio and Gunna Dickson)