The Continuing Saga Of The Toronto Stock Exchange

Background

The announcement in the spring of 2011 of the proposed merger of the holding companies of the Toronto and London stock exchanges, the TMX Group Inc. and the London Stock Exchange Group plc, respectively, resulted in widespread debate in Canada and a large number of mixed reactions, including the widely publicized proposal from Maple Group Acquisition Corporation. Despite the Maple Group proposal, the TMX Group affirmed its commitment to the TMX/LSE merger and initially rejected the Maple Group proposal. As a result, on June 13, the Maple Group launched a formal bid for the TMX Group.

The promoted benefits of the TMX/LSE merger included increased access to international capital markets for Canadian issuers, as well as the prospect of decreased operating costs for the exchange operators. There were still numerous and substantial fears, however, that the merger would result in the loss of control of an iconic Canadian entity and submission to foreign