Montreal Exchange Continues Talks With TSX Group On Merger - Update

(RTTNews) - Canadian derivatives exchange, The Montreal Exchange Inc. (MXX.TO) Thursday said it has been continuing negotiations with the TSX Group (X.TO | charts | news | PowerRating), operator of the Toronto Stock Exchange, to explore a 'possible future business combination.' However, Montreal Exchange did not assure that the ongoing talks would culminate in a deal. MXX.TO is currently trading around 22% above the previous close.

There has been a demand from investors in both exchanges for a merger, as they believed that the combined entity would be better equipped to face the growing competition in their markets.

A non-compete agreement currently in place between Montreal Exchange and Toronto Stock Exchange will expire in 2009, when Toronto Stock Exchange introduce its Equity Options Products to end the Canadian derivatives monopoly of Montreal Exchange.

Earlier in October, Montreal Exchange increased its stake in Boston Options, following a discussion with the Boston Stock Exchange.

Trading in Montreal Exchange shares was halted on the Toronto Stock Exchange and the companies will not be releasing any additional information, unless the situation warrants.

MXX.TO is currently trading at C$35.83, up C$6.63 or 22.71%, on 42 thousand shares.

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