TMX Group Inc. is adjusting its trading fees as the emergence of the multiple marketplace environment heightens competition, Kevan Cowan, group head of equities and president of TSX Markets said on Friday.

Cowan spoke at the Canadian Securities Traders Association Annual Conference in Quebec City.

TMX Group announced two changes to trading fees that will take effect October 1, 2009. First, the company will adjust the Electronic Liquidity Provider fee schedule to support the continued evolution of the program and its participants, as the company aims to attract new, quality trading participants through the program.

In addition, TMX will reduce costs for the active trader for stocks trading under $1, cutting the fees by an average of 24%.

The company said it expects the fee changes to have an essentially neutral impact on its revenues based on historical volumes, product and customer mix.

Cowan said the arrival of the multiple marketplace environment has led to new competitive pressures for TMX Group.

“As Canada seeks to enhance its capital markets and expand its international presence, we are seeing some players opportunistically fragment the domestic marketplace,” he said.

Cowan added that this heightened competition underlines the importance for equal regulation.

“We have and will continue to compete vigorously, but we must ensure that there is a level-playing field that sets fair rules of the game while protecting investors,” he said.

Cowan’s speech also included remarks on the strength of the Canadian financial system. He noted that TMX Group participated in a mission to China hosted by Finance Minister Jim Flaherty this past week.

“Canada should be proud of the international recognition we have gained over the past year. That reputation for stability, good governance and sound management has allowed Canada to emerge as an ideal venue for companies of all sizes, in multiple sectors, to publicly list and attract capital,” Cowan said. “Across the United States, and in China, the United Kingdom and elsewhere, TMX Group is identifying and bringing home quality listings that will further strengthen our national public markets.”

IE