TMX Group has announced that it is expanding its services into a new business area that will extend the efficiencies of equities trading and settlement to the mutual fund industry. The TSX NAVex Platform will facilitate purchases and redemptions of mutual funds using TMX’s proven equities trading, clearing and settlement infrastructure.
By leveraging connectivity, systems and processes well established in the industry, the new platform will provide registered dealers with easy access to a broad range of investment funds. Mutual funds posted on the TSX NAVex platform will be visible to all participants who currently trade TSX-listed equities and ETFs, which coupled with inherent support for bulk trading, creates a new, efficient distribution channel for mutual fund manufacturers.
With over 160 years of experience in establishing and operating innovative market models, TMX is uniquely positioned to facilitate the next transformation in mutual fund processing. The concept behind TSX NAVex was developed in collaboration with select industry participants. To ensure that the final solution meets industry-wide needs and reflects industry best practices, TMX recently formed the TSX NAVex Working Group, which will help finalize the details of the offering.
“We are extremely excited to partner with a broad set of industry stakeholders and together create an industry-neutral solution that will benefit the whole market,” said Nick Thadaney, President & CEO, Global Equity Capital Markets, TMX Group. “We are very grateful for their ongoing insights, input and support.”
TMX’s centralized mutual fund solution, which is expected to launch in Q2 2016 subject to industry readiness, leverages the broad range of TMX’s assets and capabilities, including the settlement of transactions through CDS Clearing and Depository Services Inc. TMX Equity Transfer Services is also available to provide transfer agency services.