Montreal Exchange MX What It Is How It Works
Cierra Murry has over 15 years of experience in banking, credit cards, investing, loans, mortgages, and real estate. She is an expert in financial analysis, underwriting, loan documentation, loan review, banking compliance, and credit risk management.
The Montréal Exchange (MX) is Canada’s oldest and main financial derivative market. It is a fully electronic derivatives exchange that lists equity derivatives, currency options (options on the U.S. dollar), index derivatives, and interest rate derivatives (bond and money markets). It is part of TMX Group, along with the Toronto Stock Exchange (TSX) and the TSX Venture Exchange. The MX is located in Montréal.
Trading on the MX is growing due to the participation of approved participants from London, New York, Chicago, and Montréal.
Key Takeaways:
– The MX is a Canadian, fully electronic derivatives exchange that lists equity derivatives, currency options, index derivatives, and interest rate derivatives.
– The MX is Canada’s oldest exchange and Quebec’s main financial derivative market.
– The MX was acquired by the TSX Group in 2007, resulting in the creation of TMX Group.
– The MX clearinghouse is the Canadian Derivatives Clearing Corporation (CDCC), which provides clearinghouse services for exchange participants.
The Montréal Exchange was founded in 1874 and merged with the Canadian Stock Exchange in 1974. It became the first Canadian exchange to offer stock options in 1975. In 1982, it changed its name to the Montréal Exchange to reflect the various financial instruments available for trading. In 1999, the Montréal Exchange was renamed the Canadian Derivatives Exchange, and the Toronto Stock Exchange became the primary exchange for trading major company stocks.
The Montréal Exchange was acquired by the TSX Group in 2007, resulting in the creation of TMX Group. The merger combined Canada’s equity and derivatives exchanges.
Currently, the MX covers equity options for larger Canada-traded companies, short-term banker’s acceptances, and index futures and options. The MX clearinghouse, the CDCC, manages risk exposures and offers risk management services to partners in the OTC market.
The regular trading hours for the MX are from 9:30 a.m. to 4:30 p.m. ET, with option classes opening for trading when a trade occurs on its underlying issue on a recognized Canadian exchange.
In 2001, the Montréal Exchange became the first traditional exchange in North America to complete the automation process. In 2004, it became the first foreign exchange to provide the Boston Options Exchange (BOX) with electronic trading systems and support. TMX Group also owns a stake in the BOX.
