stats
globeinteractive.com: Making the Business of Life Easier

   Finance globeinvestor   Careers globecareers.workopolis Subscribe to The Globe
The Globe and Mail /globeandmail.com
Home | Business | National | Int'l | Sports | Columnists | The Arts | Tech | Travel | TV | Wheels
space


Search

space
  This site         Tips

  
space
  The Web Google
space
   space



space

  Where to Find It


Breaking News
  Home Page

  Report on Business

  Sports

  Technology

space
Subscribe to The Globe

Shop at our Globe Store


Print Edition
  Front Page

  Report on Business

  National

  International

  Sports

  Arts & Entertainment

  Editorials

  Columnists

   Headline Index

 Other Sections
  Appointments

  Births & Deaths

  Books

  Classifieds

  Comment

  Education

  Environment

  Facts & Arguments

  Focus

  Health

  Obituaries

  Real Estate

  Review

  Science

  Style

  Technology

  Travel

  Wheels

 Leisure
  Cartoon

  Crosswords

  Food & Dining

  Golf

  Horoscopes

  Movies

  Online Personals

  TV Listings/News

 Specials & Series
  All Reports...

space

Services
   Where to Find It
 A quick guide to what's available on the site

 Newspaper
  Advertise

  Corrections

  Customer Service

  Help & Contact Us

  Reprints

  Subscriptions

 Web Site
  Advertise

  E-Mail Newsletters

  Free Headlines

  Globe Store New

  Help & Contact Us

  Make Us Home

  Mobile New

  Press Room

  Privacy Policy

  Terms & Conditions


GiveLife.ca

    

PRINT EDITION
TMX to buy energy-trading software firm Trayport
space
space
By CHRISTINA PELLEGRINI, JEFFREY JONES
  
  

Email this article Print this article
Saturday, October 28, 2017 – Page B2

The Toronto Stock Exchange's parent company is buying a British-based provider of software for energy traders, brokers and exchanges for $931million in a deal that shifts control over oil-and-gas trading platforms in Canada.

TMX Group Ltd. will pay $592-million in cash to buy Trayport Holdings Ltd. from Intercontinental Exchange (ICE) Inc., which also owns the New York Stock Exchange. TMX will pay for the remaining $339-million by selling Natural Gas Exchange Inc.

(NGX) and oil brokerage Shorcan Energy Brokers Inc. to ICE.

Trayport is a technology platform that brings together pricing information and trading activity in commodities, including power, natural gas, coal and oil, across multiple marketplaces. It operates in 42 countries, with an emphasis on Europe. Its clients are a mix of brokers, exchanges and clearinghouses.

TMX says the deal will help it bolster its data and analytics business, pursue growth outside the Canadian market and generate a larger slice of revenue that's recurring instead of transaction-based. The development brings new competition to an active part of the energy business used by experts who make deals to supply Canadian oil and gas to buyers across the continent.

"This is a play in technology-driven solutions, but it's also a major play in global energy markets," said Lou Eccleston, chief executive at TMX.

"Trayport is a player in the global energy market, which is going to grow."

A subscription to Trayport gives clients access to reams of energy market data, as well as analytics tools that can be employed to better understand this data. It is also a place where different market participants can interact virtually.

Founded in 1993, Trayport has 240 employees across offices in London, New York and Singapore. During the past 12 months, Trayport has generated $99-million in revenue. By contrast, in the year through June 30, NGX and Shorcan recorded $59-million in sales.

Mr. Eccleston said TMX has its sights set on expanding the Trayport platform into new asset classes and entering new regions. The technology is flexible, so that if a new asset class in, for example, clean tech takes off, Trayport can move into that market, Mr. Eccleston said.

The sale of Trayport comes months after British competition authorities ruled that ICE had to sell the business to preserve competition in the European energy-trading market.

ICE, which is headquartered in Atlanta, is no stranger to Canada. It also operates ICE Futures Canada, the country's Winnipeg-based derivatives market for agriculture.

NGX is the dominant platform for wholesale natural gas trade in Canada, providing electronic trading, clearing and data. It is best known for developing the AECO gas storage hub in southeastern Alberta into a benchmark for pricing for the fuel, which it expanded into the United States more than a decade ago. NGX also hosts electricity trading.

Shorcan Energy Brokers provides a similar platform for crude oil, such as Western Canada Select, the heavygrade crude that is frequently quoted as a benchmark. That part of the business has faced increasing competition, with the entry last year of Europe's Marex Spectron.

In efforts to consolidate the fragmented market and avoid price discrepancies, Marex Spectron and a local player, One Exchange, have teamed up to offer a single benchmark for WCS oil prices and have invited Shorcan and another major rival, Net Energy Inc., to join the effort.

"We did not do this to sell those businesses," said Mr. Eccleston, of NGX and Shorcan. "They weren't up for sale. They happened to be a compelling reason for ICE to do this deal with us."

The sale of NGX and Shorcan to ICE is subject to regulatory approval, including from the Canadian Competition Bureau. If the sale doesn't close within the next 45 days, TMX's acquisition of Trayport can be separated from the sale of NGX and Shorcan to ICE. The price of Trayport would be then $931-million in cash, whereas NGX and Shorcan would be sold for $339-million in cash.

And if the closing doesn't occur within 90 days, ICE can choose to back out of its purchase of NGX and Shorcan.

Barclays advised TMX on the deal.

Shares of TMX rose 1 per cent, or 95 cents, to $67.49 in early trading on Friday. The company's stock has slid 6 per cent so far in 2017.

TMX Group (X) Close: $67.86, up $1.36


Huh? How did I get here?
Return to Main Rob_Carrick Page
Subscribe to
The Globe and Mail
 

Email this article Print this article

space  Advertisement
space

Need CPR for your RSP? Check your portfolio’s pulse and lower yours by improving the overall health of your investments. Click here.

Advertisement

7-Day Site Search
    

Breaking News



Today's Weather


Inside

Rick Salutin
Merrily marching
off to war
Roy MacGregor
Duct tape might hold
when panic strikes


Editorial
Where Manley is going with his first budget




space

Columnists



For a columnist's most recent stories, click on their name below.

 National


Roy MacGregor arrow
This Country
space
Jeffrey Simpson arrow
The Nation
space
Margaret Wente arrow
Counterpoint
space
Hugh Winsor  arrow
The Power Game
space
 Business


Rob Carrick arrow
Personal Finance
space
Drew Fagan arrow
The Big Picture
space
Mathew Ingram arrow
space
Brent Jang arrow
Business West
space
Brian Milner arrow
Taking Stock
space
Eric Reguly arrow
To The Point
space
Andrew Willis arrow
Streetwise
space
 Sports


Stephen Brunt arrow
The Game
space
Eric Duhatschek arrow
space
Allan Maki arrow
space
William Houston arrow
Truth & Rumours
space
Lorne Rubenstein arrow
Golf
space
 The Arts


John Doyle arrow
Television
space
John MacLachlan Gray arrow
Gray's Anatomy
space
David Macfarlane arrow
Cheap Seats
space
Johanna Schneller arrow
Moviegoer
space
 Comment


Murray Campbell arrow
Ontario Politics
space
Lysiane Gagnon arrow
Inside Quebec
space
Marcus Gee arrow
The World
space
William Johnson arrow
Pit Bill
space
Paul Knox arrow
Worldbeat
space
Heather Mallick arrow
As If
space
Leah McLaren arrow
Generation Why
space
Rex Murphy arrow
Japes of Wrath
space
Rick Salutin arrow
On The Other Hand
space
Paul Sullivan arrow
The West
space
William Thorsell arrow
space





Home | Business | National | Int'l | Sports | Columnists | The Arts | Tech | Travel | TV | Wheels
space

© 2003 Bell Globemedia Interactive Inc. All Rights Reserved.
Help & Contact Us | Back to the top of this page