Canada's competition regulator has "serious concerns" about a C$3.8 billion ($3.7 billion) proposal to take over TMX Group , a deal that would bring most of the country's financial exchanges under one roof.Maple Group's bid would unite the Toronto Stock Exchange and the TSX Venture Exchange for small-cap stocks with their largest competitor, Alpha Group, a so-called alternative trading system. Maple is also seeking to put the exchanges under the same umbrella as CDS, which clears and settles all trades in Canada.The Competition Bureau's main concerns are the impact the proposal would have on equities trading as well as clearing and settlement services. The news pushed TMX shares down 2.8 percent by midday on Wednesday.A source close to the deal said the regulator's concerns did not mean the merger plan was dead. Still TMX and Maple - a consortium of 13 Canadian financial institutions - would have to make concessions for the watchdog to bless the deal.
TMX Group Inc. is an integrated, multi-asset class exchange group. Shares of X fell by 2.86% or $-1.28/share to $43.47. In the past year, the shares have traded as low as $34.53 and as high as $45.69. On average, 149802 shares of X.TO exchange hands on a given day and today's volume is recorded at 398237.
Financial Institutions, Inc. (FII) is a financial holding company. Shares of FISI traded higher by 5.24% or $0.79/share to $15.88. In the past year, the shares have traded as low as $12.18 and as high as $20.74. On average, 36350 shares of FISI exchange hands on a given day and today's volume is recorded at 16327.
