TMX Group (TMXGF.PK) appears to be more than holding its own in the crowded trading portal sector, exceeding expectations by posting robust volumes and holding on to market share in August transactions.
Richard McCormick, analyst with Blackmont Capital, notes that TMX only lost 0.2% of monthly market share in the month, far less than the 1.7% he expected.
Competing trading system Alpha gained 1.6% market share while Chi-X and Pure lost 0.7% and 0.8% respectively.
As well, TMX has produced year-over-year cash equity volume growth of 38%, again well in excess of the 7% forecasted, while the Montreal Exchange posted a year-over-year decline in volume of only 15%, ahead of the 19% expected.
"August once again points to the resiliency of TMX under a positive capital markets environment," Mr. McCormick said in a note Tuesday.
Blackmont maintains a Sector Outperform rating and a $44 target price for TMX.