TMX buys 16% stake in Bermuda exchange

TMX Group Inc. (X-T) has bought a 16-percent stake in the Bermuda Stock Exchange.

Toronto's stock market operator suggested the move is part of a strategy that includes doing an increasing proportion of business outside of Canada. It also comes at a time when the amount of business activity between Bermuda and Canada is increasing, the company said.

"This investment represents TMX Group's commitment to looking beyond Canada for opportunities," said CEO Tom Kloet, who will now be joining the BSX board of directors.

The deal comes amid a period of consolidation among the world's stock exchange operators. The London Stock Exchange walked away from a bid for the TMX Group six months ago after failing to receive enough support from the Toronto company's shareholders.

LSE's rival bidder, the Maple Group, which is a consortium of Canadian banks and other financial institutions, still has a bid for the TMX Group on the table. Maple is currently trying to work through regulatory hurdles, most notably those posed by the Competition Bureau, and to negotiate details for the potential takeovers of Alpha Group (an alternative trading platform that competes with the TSX) and the Canadian Depository for Securities (which provides clearing and settlement services).

Maple's bid for the TMX Group involves the acquisition of those businesses.