Toronto Stock Exchange buys into Bermuda Stock Exchange possible pincer encircling move around NYSE $TMX.X $NYX

Toronto Stock Exchange

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The Toronto Stock Exchange (TMX.X) announced that it has acquired 16% of the Bermuda Stock Exchange (BSX). Bermuda is an interesting jurisdiction with lots of specialty products which are financially engineered. Long known as an insurance haven Canadian investors can now easily invest in BSX offerings without offshore tax implications. The tax laws have also changed to the advantage of Canadian investors.

Watch for Canadian domiciled subsidiaries of US companies investing in Bermuda Stock exchange listed offerings. Gets around a lot of Reg FD problems. Gets around a lot of regulatory issues. Becomes quite the back door for a lot of Wall Street specialized structures if you know what I mean. Problems or opportunity for the New York Stock Exchange (NYSE:NYX)

Watch out Wall Street!  

George Gutowski writes from a caveat emptor perspective.

#occupywallstreet becomes an American export. Canada not so happy. #Toronto #TSX

Toronto Stock Exchange

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The Occupy Wall Street phenomena seems to have exported itself to Canada with Facebook plans for demonstrations on Saturday Oct 15. The supposedly big one will be in Toronto the financial capital which is still reeling from G20 riots over a year ago. By the time the protest takes place Toronto will have had a municipal election, a full provincial election and a full federal election. Everything that you can vote for has come up. So why is one person one vote not working for this group. Besides the political media will still be buzzing about the provincial election which seems to be a dead heat.

BTW the Toronto Stock Exchange is completely electronic. There is no trading floor just a few offices somewhere. Also like the NYSE the TSX is closed on weekends. Toronto can be colder than NYC so protesters bring a really good jacket.

$XFN Canadian Banks Hypocritical

Toronto Stock Exchange

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Canadian Banks (TSX:XFN) have taken a hysterical view-point about the proposed merger of the Toronto Stock Exchange (TSX) with the London Stock Exchange (LSE). The two exchanges present the compelling proposition of scale and economies of size. The Canadian banks are supposedly against the merger. All Canadian banks are expanding internationally by acquisition but do not want to see the premier exchange at home to be playing the same game.

The truth is the Canadian banks want to control trading and bypass the Toronto Exchange whenever possible. With the LSE merger the natural order as they see it is being upset. But wait there are five (5) major Canadian Banks who really control the game. Everyone else is strictly B list. Are they all on the same page?

Only $TD Bank (NYSE:TD) and $CM CIBC (NYSE:CM) have signed official letters of complaint. Scotia Bank $BNS (NYSE:BNS) has remained silent. Scotia has a long history of international expansion and would be laughed off Bay Street if it voiced an opinion against. The two remaining banks are $RY Royal Bank (NYSE:RY) and $BMO Bank of Montreal (NYSE:BMO) are actually advisors to the Toronto Stock Exchange and stand to make substantial fees on completion. So a dollar now seems to be more important for obvious greedy reasons.

The Canadian Banking system has come as close as possible to suck and blow at the same time. Maybe that’s why they are all decent dividend plays. What Canada needs is a national securities regulator. Investing is a global business. Parochial provincial interests will only hurt investors in the long run.

Disclosure: “George Gutowski” writes from a “caveat emptor perspective”. I hold no positions in stocks mentioned in this post. I have held such positions in the past. But I have no plans to initiate new positions within the next 72 hours.

Torstar Confusion


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Torstar (TSE:TS.B) which trades on the Toronto Stock Exchange, is in a state of confusion. They recently sold off a big stake in CTV and enjoyed a very large liquidity event. Their fundamental problem is their legacy asset, a large circulation newspaper called Toronto Star. They have no vision for the future or how to use the internet.

Recently they launched a special Sunday insert which carries the New York Times Book reviews. This is supposed to be a major catalyst. iPad, Kindle, other readers and tablets and these guys come up with their A game and cut down some more trees.

Disclosure: George Gutowski writes from a caveat emptor perspective. I hold no positions in stocks mentioned in this post.