By Alastair Sharp
TORONTO, March 30 (Reuters) - The chief executive of
Canada's dominant stock exchange operator, TMX Group Ltd X.TO ,
said on Wednesday the country's capital market rules must
swiftly adapt to technological changes and rising competition.
Lou Eccleston declined to say what specific changes the
company wants to see, but suggested the market is now
fundamentally different with the entrance of new exchanges and
the Toronto Stock Exchange operator should not be held to a
higher standard than emerging rivals.
The comments come two days after transatlantic exchange
operator Nasdaq Inc NDAQ.O said it plans to turn the Canadian
operations of Chi-X it bought last month into full-blown stock
exchanges.
"The whole concept of TMX as a dominant player in the market
is going to be challenged as the market evolves," Eccleston told
reporters after the speech.
The platforms, renamed Nasdaq CX and Nasdaq CX2, currently
operate as alternative trading systems, which are more lightly
regulated than exchanges.
TMX dominates the listings business in Canada, though it
does have competition from the Canadian Securities Exchange, and
upstart Aequitas' NEO Exchange, which landed its first listing -
an exchange-traded fund - in January.
Eccleston joined TMX in late 2014 and has since put more
focus on technology services such as products to help customers
better analyze market data. It also recently expanded its mutual
fund industry offerings and added a cattle trading platform.
The company has struggled in recent years as sustained low
commodity prices hurt a large portion of its resource-based
issuers.