TMX Group Reports Double-Digit Growth, Unveils USD $2.3 Billion MEMX Deal
The Canadian exchange operator posted strong Q2 results while announcing a major strategic investment in U.S. equities and options markets.
Strong First Half Performance Across All Segments
TMX Group Limited delivered robust financial results for the first half of 2026, with overall revenue climbing 16% year-over-year and double-digit growth across all business segments (earnings call, 2026-07-31). Adjusted diluted earnings per share increased 27%, while organic revenue—excluding 2025 acquisitions—grew 14%.
The exchange operator's capital formation revenue surged 20%, driven by a 51% increase in overall capital raised. TSX Venture Exchange saw particularly strong momentum, with equity capital raised totaling $6.9 billion in the first six months, representing a 108% increase from the prior year (earnings call, 2026-07-31). Notable transactions included Blue Moon Metals' $156 million offering in May and Apotex's $1.5 billion IPO in June, the largest life science IPO in Canadian history.
New listings increased 44% to 251 companies, while Canada's ETF market reached new heights with total net inflows of more than $104 billion, nearly double last year's first-half performance (earnings call, 2026-07-31).
Trading Activity Accelerates
Equities and fixed income trading revenue jumped 25% year-over-year, fueled by a 32% increase in combined volumes. TSX Venture Exchange volumes surged 60%, while derivatives trading and clearing revenue at MX and CDCC increased 26% (earnings call, 2026-07-31).
The Montreal Exchange set a new all-time record with 35.6 million contracts in overall open interest on June 18, while average daily volume reached 1.1 million contracts. The Canadian Overnight Repo Rate Average (CORA) product saw volumes increase 34% year-over-year as participants navigated interest rate policy uncertainty (earnings call, 2026-07-31).
Global Insights Division Expands
Revenue from TMX's Global Insights franchise increased 16%, with TMX VettaFi posting 23% growth, or 25% in U.S. dollar terms. The company announced the pending acquisition of RAFI Indices, expected to close by the end of Q3, which will more than triple total assets under indexing (earnings call, 2026-07-31).
Transformative U.S. Markets Investment
In the most significant announcement, TMX unveiled plans to combine U.S.-based exchanges MEMX and BOX into MEMX Group, valued at approximately USD $2.3 billion or CAD $3.2 billion. TMX will contribute approximately USD $800 million in cash plus its current BOX ownership stake to secure approximately 59% of the combined entity (earnings call, 2026-07-31).
"This is a strategic investment, and it is an exciting step forward, increasing our stake in the U.S. options and equity market, which is the most competitive marketplace in the world and one we know very well," said CEO John McKenzie (earnings call, 2026-07-31).
The transaction, expected to close in the second half of 2027 subject to regulatory approval, will be supported by existing MEMX and BOX participants rolling their equity into minority stakes.
Additional Strategic Moves
TMX also expects to imminently close its acquisition of Cboe Australia, announced in April, with the entity to be rebranded as TMX Australia. The company is separately acquiring Cboe Canada (earnings call, 2026-07-31).
MarginX data shows TMX will present at Canaccord Genuity's 46th Annual Growth Conference on August 12, while recent regulatory filings indicate share repurchases totaling 574,180 shares.
This article was generated by MarginX from the earnings call on 2026-07-31. It is not investment advice.