TMX Bids for Risk Management Software Vendor Amid Troubles
![Sydney Sydney](/sites/default/files/styles/landscape_750_463/public/import/IMG/181/92181/sydney-580x358.jpg.webp?itok=k1_l2tOR)
Canadian exchange operator TMX Group has entered into a takeover agreement with Sydney-based risk management software provider Razor Risk Technologies and will acquire all of the vendor’s issued shares. The offer is for CAD$.0349 ($.0343) per share, equivalent to a purchase price multiple of one times annual sales as of June 2011. Razor’s board has indicated that it will accept the offer, subject to its terms and conditions.
"The acquisition of Razor is exciting because it supports several areas of TMX Group's strategy and it provides a point of entry into the attractive risk management sector," says Brenda Hoffman, senior vice president, group head of information technology at TMX. "We are very pleased to be joining forces with the Razor employee team to offer our customers enhanced risk management services and products."
TMX's bid is indicative of how exchanges are expanding their clearing capabilities, particularly driven by incoming regulation regarding the over-the-counter (OTC) derivatives market. Under proposed rules in the Dodd–Frank Act in the US and Europe's review of the Markets in Financial Instruments Directive (Mifid II), standardized derivatives will need to be traded on-exchange, and centrally cleared. Razor specializes in clearing risk management, and counts large European clearinghouses on its client books.
The offer also comes at a time when the Canadian Commissioner of Competition has expressed serious concerns about threats to competition over the Maple Group's proposed takeover of TMX. These concerns rest primarily with equities trading, and clearing and settlement services, and TMX already owns a clearinghouse in the form of the Canadian Derivatives Clearing Corp. Maple has been the frontrunner since a proposed takeover bid for the group by the London Stock Exchange Group soured earlier this year.
In addition to TMX's problems, a technical fault on the Toronto Stock Exchange caused difficulties in trading yesterday, due to errors with stock symbols beginning with the letters M–Z.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
This Week: Startup Skyfire launches payment network for AI agents; State Street; SteelEye and more
A summary of the latest financial technology news.
Waters Wavelength Podcast: Standard Chartered’s Brian O’Neill
Brian O’Neill from Standard Chartered joins the podcast to discuss cloud strategy, costs, and resiliency.
SS&C builds data mesh to unite acquired platforms
The vendor is using GenAI and APIs as part of the ongoing project.
Chevron’s absence leaves questions for elusive AI regulation in US
The US Supreme Court’s decision to overturn the Chevron deference presents unique considerations for potential AI rules.
Reading the bones: Citi, BNY, Morgan Stanley invest in AI, alt data, & private markets
Investment arms at large US banks are taken with emerging technologies such as generative AI, alternative and unstructured data, and private markets as they look to partner with, acquire, and invest in leading startups.
Startup helps buy-side firms retain ‘control’ over analytics
ExeQution Analytics provides a structured and flexible analytics framework based on the q programming language that can be integrated with kdb+ platforms.
The IMD Wrap: With Bloomberg’s headset app, you’ll never look at data the same way again
Max recently wrote about new developments being added to Bloomberg Pro for Vision. Today he gives a more personal perspective on the new technology.
LSEG unveils Workspace Teams, other products of Microsoft deal
The exchange revealed new developments in the ongoing Workspace/Teams collaboration as it works with Big Tech to improve trader workflows.