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The Montreal Exchange (MX; french: Bourse de Montréal), formerly the Montreal Stock Exchange (MSE), is a derivatives exchange, located in
Montreal, Quebec Montreal ( ; officially Montréal, ) is the second-most populous city in Canada and most populous city in the Canadian province of Quebec. Founded in 1642 as '' Ville-Marie'', or "City of Mary", it is named after Mount Royal, the triple-pe ...
, Canada that trades
futures contract In finance, a futures contract (sometimes called a futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The asset ...
s and
options Option or Options may refer to: Computing *Option key, a key on Apple computer keyboards *Option type, a polymorphic data type in programming languages *Command-line option, an optional parameter to a command *OPTIONS, an HTTP request method ...
on equities, indices, currencies, ETFs, energy and interest rates. Since 1965, it has been located in the
Tour de la Bourse The Tour de la Bourse ( en, Stock Exchange Tower) is a 48-storey skyscraper in Montreal, Quebec, Canada. It is located at the intersection of Victoria Square and Saint Jacques Street in the International Quarter. It is connected by the undergro ...
(Stock Exchange Tower), Montreal's third-tallest building. It is owned by the
Toronto Toronto ( ; or ) is the capital city of the Canadian province of Ontario. With a recorded population of 2,794,356 in 2021, it is the most populous city in Canada and the fourth most populous city in North America. The city is the anch ...
-based
TMX Group TMX Group Limited is a Canadian financial services company that operates equities, fixed income, derivatives, and energy markets exchanges. The company provides services encompassing listings, trading, clearing, settling and depository facili ...
.


History


Montreal Stock Exchange (1874-1982)

The first exchange in Canada began in 1832 as an informal
stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for t ...
at the Exchange Coffee House in Montreal. In 1874, Lorn MacDougall, along with his brothers Hartland St. Clair MacDougall and George Campbell MacDougall, James Burnett and Frank Bond were the driving force behind the creation of the Montreal Stock Exchange (a name that was used until 1982 when it became the Montreal Exchange). The shareholders voted Lorn MacDougall its first Chairman of the Governing Committee, a position he held until poor health forced him to retire in 1883. By 1910, the number of trades amounted to about $2.1 million whereas the Toronto Stock Exchange only amounted to $900,000. The prosperity of the Montreal Stock Exchange led to the creation of major corporations like Dominion Textile and Montreal Light, Heat & Power. At that time, many major financial institutions established their headquarters on and around
Saint Jacques Street Saint Jacques Street (officially in french: rue Saint-Jacques), or St. James Street, is a major street in Montreal, Quebec, Canada, running from Old Montreal westward to Lachine. The street is commonly known by two names, "St. James Street" in ...
. In 1903, the same year as the construction of New York's now famous Exchange Building, the Montreal Stock Exchange commissioned the same architect, George B. Post, to design its building on St. Francois-Xavier Street.
World War I World War I (28 July 1914 11 November 1918), often abbreviated as WWI, was List of wars and anthropogenic disasters by death toll, one of the deadliest global conflicts in history. Belligerents included much of Europe, the Russian Empire, ...
marked the end of Canada's dependence on
London London is the capital and List of urban areas in the United Kingdom, largest city of England and the United Kingdom, with a population of just under 9 million. It stands on the River Thames in south-east England at the head of a estuary dow ...
's market. By contributing greatly to the war effort, Canada's economy was greatly strengthened by the war. All through the 1920s, Montreal's market experienced strong growth, reaching $3.5 million. In 1926, the " Montreal Curb Market" was created to allow trading in speculative and junior stocks. If successfully grown, they could apply for a transfer to the main Exchange. In 1953, the Curb Market was renamed the Canadian Stock Exchange. The 1929 crisis hit Montreal especially hard. In 1934, due to multiple factors, the Toronto Stock Exchange surpassed Montreal. Still, Montreal's position in Canada's economy recovered, and it was not until the mid-1970s that Toronto became the metropolis of Canada after a decade of political troubles in Montreal.


Decline

For the
separatist Separatism is the advocacy of cultural, ethnic, tribal, religious, racial, governmental or gender separation from the larger group. As with secession, separatism conventionally refers to full political separation. Groups simply seeking greate ...
group
Front de libération du Québec The (FLQ) was a Marxist–Leninist and Quebec separatist guerrilla group. Founded in the early 1960s with the aim of establishing an independent and socialist Quebec through violent means, the FLQ was considered a terrorist group by the Cana ...
, the Montreal Stock Exchange represented a bastion of Anglo-Canadian power. On February 13, 1969, they
detonate Detonation () is a type of combustion involving a supersonic exothermic front accelerating through a medium that eventually drives a shock front propagating directly in front of it. Detonations propagate supersonically through shock waves with ...
d a bomb at the Stock Exchange that blew out the northeast wall and injured 27 people.


Montreal Exchange (1982–present)

In 1982, the Montreal Stock Exchange changed its name to the Montreal Exchange to reflect the growing importance of financial instruments other than stocks–primarily options and futures–on its trading floor. In 1999, the Vancouver, Alberta, Toronto and Montreal exchanges agreed to restructure the Canadian capital markets along the lines of market specialization, resulting in the Montreal Exchange assuming the position of Canadian Derivatives Exchange for the following 10 years. Trading in the shares of large companies was transferred to the
Toronto Stock Exchange The Toronto Stock Exchange (TSX; french: Bourse de Toronto) is a stock exchange located in Toronto, Ontario, Canada. It is the 10th largest exchange in the world and the third largest in North America based on market capitalization. Based in the ...
(TSX), and in the trading of smaller companies to the new Canadian Venture Exchange (now:
TSX Venture Exchange The TSX Venture Exchange is a stock exchange in Canada. It is headquartered in Calgary, Alberta, with offices in Toronto, Vancouver, and Montreal. All trading through the Exchange is done electronically, so the Exchange does not have a "trading f ...
). This change, which reflected the economic reality that most equity trading had moved to the TSE, caused consternation among those in favour of political independence for the province of Quebec. At the end of 2001, the Exchange had completed its migration from an
open outcry Open outcry is a method of communication between professionals on a stock exchange or futures exchange, typically on a trading floor. It involves shouting and the use of hand signals to transfer information primarily about buy and sell orde ...
environment to a fully automated trading system, becoming the first traditional exchange in North America to complete this transformation. In the process, it modified the market model for trading, from a traditional specialist model to a competing market making model for the equity option market. In February 2004, the Exchange became the sole provider of electronic trading systems and support for the Boston Options Exchange (BOX), making it the first foreign exchange to be responsible for the day-to-day technical operations of an American exchange using the Sola Trading electronic platform. That contract now provides the Montreal Exchange with a significant part of its revenue. The Montreal Exchange has a 31.4% stake in the Boston Option Exchange (BOX), percentage that has since risen to over 51% (as of September 2009). On December 10, 2007, TSX Group announced that it had acquired Montreal Exchange Inc. for C$1.31 Billion. The acquisition was completed on 1 May 2008 and the corporation subsequently was renamed TMX Group Inc. On February 9, 2011, the
London Stock Exchange London Stock Exchange (LSE) is a stock exchange in the City of London, England, United Kingdom. , the total market value of all companies trading on LSE was £3.9 trillion. Its current premises are situated in Paternoster Square close to St Pau ...
announced that they had agreed to merge with the
TMX Group TMX Group Limited is a Canadian financial services company that operates equities, fixed income, derivatives, and energy markets exchanges. The company provides services encompassing listings, trading, clearing, settling and depository facili ...
, Montreal Exchange's parent, hoping to create a combined entity with a market capitalization of $5.9 trillion (£3.7 trillion).
Xavier Rolet Xavier R. Rolet (born 12 November 1959) is a French businessman and the chairman and chief executive officer (CEO) of World Quantum Growth Acquisition Corporation, a NYSE-listed company (WQGA.U). He was CEO of CQS until January 2020, and before ...
, who currently is CEO of the LSE Group, would head the new enlarged company, while TMX Chief Executive Thomas Kloet would become the new firm president. Based on data from December 30, 2010 the new stock exchange would be the second largest in the world with a market cap 48% greater than the
Nasdaq The Nasdaq Stock Market () (National Association of Securities Dealers Automated Quotations Stock Market) is an American stock exchange based in New York City. It is the most active stock trading venue in the US by volume, and ranked second ...
. Eight of the fifteen board members of the combined entity will be nominated by LSE and seven by TMX. The provisional name for the combined group would be LTMX Group plc. On June 13, 2011, a rival, and hostile bid from the ''Maple Group'' of Canadian interests, was unveiled. A cash and stock bid of $3.7 billion CAD, in hopes of blocking the LSE Group's takeover of TMX. The group is composed of the leading banks and financial institutions of Canada.


Montreal Curb Market/Canadian Stock Exchange

The Montreal Curb Market was a
stock exchange A stock exchange, securities exchange, or bourse is an exchange where stockbrokers and traders can buy and sell securities, such as shares of stock, bonds and other financial instruments. Stock exchanges may also provide facilities for t ...
created in 1926 for trading in stocks that were considered to be too speculative or junior to be traded on the Montreal Stock Exchange (MSE). As these companies matured, trading in their shares was transferred to the MSE. In 1953, the Montreal Curb Market changed its name to Canadian Stock Exchange. In 1974, the Canadian Stock Exchange merged with the Montreal Stock Exchange, retaining the larger exchange's name. On November 29, 1999, the small-cap portion of the equities market of the Montreal Exchange was merged into the Canadian Venture Exchange (CDNX), along with the
Alberta Stock Exchange The Alberta Stock Exchange (ASE) was a stock exchange based in Calgary, Alberta, established in 1913. It featured mostly mining, resource exploration, and oil sands stocks. The ASE was the original listing exchange for Bre-X, one of the biggest ...
(ASE) and the Vancouver Stock Exchange (VSE). The Canadian Dealing Network and Winnipeg Stock Exchange also merged with CDNX. The Canadian Venture Exchange is today known as the TSX Venture Exchange and is based in
Calgary Calgary ( ) is the largest city in the western Canadian province of Alberta and the largest metro area of the three Prairie Provinces. As of 2021, the city proper had a population of 1,306,784 and a metropolitan population of 1,481,806, maki ...
, although still has offices in Montreal.


Montreal Climate Exchange

The Montreal Climate Exchange or ''MCeX'' was started as a joint venture between the Montreal Exchange and the now-defunct Chicago Climate Exchange (CCX). It trades futures contracts on
greenhouse gas A greenhouse gas (GHG or GhG) is a gas that absorbs and emits radiant energy within the thermal infrared range, causing the greenhouse effect. The primary greenhouse gases in Earth's atmosphere are water vapor (), carbon dioxide (), methane ...
es. Established on July 12, 2006, and launched on May 30, 2008, MCeX is the first regulated environmental market in Canada.


Background

As part of the 2008 federal climate plan, in addition to internal reductions, large regulated industrial emitters in Canada are able to choose to buy emission units on the domestic carbon market. Regulated emitters’ credits are issued by government authorities at the end of a compliance year to regulated emitters that reduce the intensity of their GHG emissions below the target established by the federal government. These emitters are able to sell their credits on the market or keep them for subsequent compliance years. Futures contracts sold on the MCeX are equal to 100 Canada carbon dioxide equivalent units (one metric ton of carbon dioxide equivalent).


Timeline

*On July 12, 2006, the Montréal Climate Exchange was established as a partnership between the MX and the CCX. The two exchanges finalized the preliminary agreement announced in Montreal on Dec. 7, 2005 during the first meeting of the parties to the
United Nations Framework Convention on Climate Change The United Nations Framework Convention on Climate Change (UNFCCC) established an international environmental treaty to combat "dangerous human interference with the climate system", in part by stabilizing greenhouse gas concentrations in ...
. *On Oct. 2, 2006 the exchange said the federal government appeared to be moving in the right direction on emissions regulation. *On Oct. 23, 2006 the exchange promoted a market-based solution to help meet environmental challenges. *On May 10, 2007, the MX filed for regulatory approval of market rules for trading of MCeX environmental products. *On July 25, 2007, the Montreal Climate Exchange announced its
carbon futures Carbon () is a chemical element with the symbol C and atomic number 6. It is nonmetallic and tetravalent—its atom making four electrons available to form covalent chemical bonds. It belongs to group 14 of the periodic table. Carbon makes up ...
contract A contract is a legally enforceable agreement between two or more parties that creates, defines, and governs mutual rights and obligations between them. A contract typically involves the transfer of goods, services, money, or a promise to tr ...
would be launched by year end. *On March 14, 2008, the Montreal Climate Exchange announced plans to launch trading of
futures contract In finance, a futures contract (sometimes called a futures) is a standardized legal contract to buy or sell something at a predetermined price for delivery at a specified time in the future, between parties not yet known to each other. The asset ...
s on Canada carbon dioxide equivalent (CO2e) units on May 30, 2008, subject to regulatory approval.


MCeX Market Makers

*Orbeo *TD Securities Inc. *TradeLink LLC


See also

*
List of futures exchanges This is a list of notable futures exchanges. Those stock exchanges that also offer trading in futures contracts besides trading in securities are listed both here and the list of stock exchanges. Africa Kenya * Nairobi Securitie ...
*
List of stock exchanges This is a list of major stock exchanges. Those futures exchanges that also offer trading in securities besides trading in futures contracts are listed both here and in the list of futures exchanges. There are sixteen stock exchanges in the wor ...
*
List of stock exchanges in the Americas This is a list of active stock exchanges in the Americas. Stock exchanges in Latin America (where Spanish and Portuguese prevail) use the term ''Bolsa de Valores'', meaning "bag" or "purse" of "values". (compare Börse in German or bourse in ...
*
List of stock exchange mergers in the Americas This is a list of major stock exchange mergers and acquisitions in the Americas. It also features the name of any resultant stock exchanges from mergers or acquisitions. According to Robert E. Wright of '' Bloomberg'' in 2013, historians assert t ...
*
European Climate Exchange The European Climate Exchange (ECX) managed the product development and marketing for ECX Carbon Financial Instruments (ECX CFIs), listed and admitted for trading on the ICE Futures Europe electronic platform. For a time it was a subsidiary of the ...
*
International Petroleum Exchange International is an adjective (also used as a noun) meaning "between nations". International may also refer to: Music Albums * ''International'' (Kevin Michael album), 2011 * ''International'' (New Order album), 2002 * ''International'' (The T ...


References


External links

* {{Authority control Companies based in Montreal Stock exchanges in Canada 1832 establishments in Canada Futures exchanges