Montreal Exchange Inc. (MX) today reported a 30% jump in profit for the third quarter ended September 30.
The MX reported net earnings of $5.9 million for the third quarter, an increase of 30% from the comparable quarter of 2005.
Total revenues in the third quarter reached $19.9 million, an increase of 20% from the same quarter of 2005.
“The Montreal Exchange registered yet another quarter of rapid growth,” said Luc Bertrand, MX president and CEO, in a news release. “During the third quarter, the total volume of contracts traded on the markets of the Montreal Exchange since the beginning of 2006 exceeded the total trading volume for the entire year 2005. With another three months of trading remaining in 2006, the Exchange expects to achieve another record year.”
The MX has been pursuing a range of development initiatives that continue into the last quarter of 2006.
On July 12, 2006, the MX and the Chicago Climate Exchange announced the creation of the Montreal Climate Exchange (MCeX). Since then, MCeX has intensified its representations to help develop the essential regulatory and economic conditions required to build an environmental market in Canada. MCeX also emphasized it has the infrastructure and expertise to rapidly put in place a market to facilitate reductions in GHGs and other pollutants. Following the presentation of the Clean Air Act by the Federal Government, on October 19, MCeX announced its intention to participate actively in consultations that will lead to the establishment of clear targets for the reduction of greenhouse gas emissions. These targets are essential conditions for the launch of the Montreal Climate Exchange.
In late September, the MX signed a series of international co-operation agreements (Memoranda of Understanding or MOUs) with four Chinese exchanges with aim of strengthening the development of derivatives markets in the two countries. The MOUs were signed with the Shenzhen Stock Exchange, the Dalian Commodity Exchange, the Zhengzhou Commodity Exchange and the Shanghai Stock Exchange. Delegations from these exchanges are expected to visit Montreal by end of 2006, giving the MX an opportunity to present its advanced electronic trading system, called SOLA. This proprietary system has been implemented by the MX in Canada and the US, and introduced on a commercial basis to the international exchange industry this year.
The MX has been offering a new clearing service to participants in the Over-the-Counter (OTC) market since October 19, 2006. MX is offering to clear equity options contracts negotiated on the OTC market through the Canadian Derivatives Clearing Corporation (CDCC). The Canadian OTC market for equity options can benefit from a central counterparty clearing solution that offers superior risk management standards to those prevailing in the bilateral OTC markets.