00:00We've been doing this for years so we weren't going to stop just because there's any changes in administration. The Canadian U.S. capital markets markets you know this are the most integrated markets in the world. And so for us to keep growing globally. U.S. is a natural point to that. And we've got ambition to keep growing the firm. We've been growing it on what we call our 2x TM2x strategy. We've almost doubled the firm in the last five years. And that means really investing in core markets like the U.S. and Europe because that's going to be where we're going to get the larger expansion.
00:29So we're now more than 50 percent of TMX is outside of Canada even though we've got that strong Canadian footprint. I believe the first ETFs in the world were in Toronto. Right. Invented on the Toronto Stock Exchange over 35 years ago. Yeah. By the way I love in the video of your office we saw some pretty cool snacks. I think that's important for opening up opening up any office. You're OK. So you're talking about this immense amount of opportunity in the U.S. but in some ways it's a double-edged sword because these capital markets and formation here in the U.S. are saturated.
00:59There's mature. So where is there a gap. Yeah. That's such a good question. And part of that gap. We've actually been doing this for 173 years as well. So we've got deep innovation expertise.
01:09You mentioned it. We invented the ETF in Toronto. The first fixed income ETF happened in Toronto 25 years ago. So there was natural things that we could bring to the U.S.
01:17market. And when we you know two years ago I was down here in New York. I was able to put our entire business team around a dinner table of eight. Now we over 200 people in the U.S.
01:27across multiple business lines supporting energy indices as we talked about ETF support new data operations that we brought in this year. We launched a new trading market this year very much
01:37focused on capabilities we built in Canada that we saw an unmet need for here. So everything we're doing is based on where we believe we've got capabilities that
01:45that value to the clients not just to be another player. One of the things that you might have to imitate rather than innovate is
01:53prediction markets. Ice is buying one and it seems to be like the hottest new thing. Are you looking to get into prediction markets. And then where do you draw the line
02:05between you know finance and sports betting. Yeah. And that's the real question. And that's the regulatory question on this as well as terms of what is
02:14investing and what is gambling. At the end of the day we believe our client base is to serve the brokers the dealers the asset managers that go out to the retail
02:24investors. Our retail side is more about investor education information content helping them understand investment options. So for us right now we don't see us
02:34being kind of first mover in that space. But there's a lot of trends like that that our team's got to make sure we're up to date on not
02:40just prediction markets. We need to be ready for 24 7. If the U.S. market moves we need to be ready for tokenization if there's a
02:46greater interest in tokenizing equity assets. So all those are on the table in terms of investing to make sure we're ready. But it's unclear in
02:54all these where the real demand is going to be in the investment market in terms of the real money demand. When again something like a
03:01prediction market though because it feels a little bit like the Wild West at the moment. Do you think that this is and people are
03:07calling it an asset class. I mean Cliff asked us if AQR was in the building saying stocking with odd lot saying that they're going to
03:12start maybe trading sports prediction markets. Does it make sense though for you to say OK this should be under a roof where we have the
03:18expertise and we can deliver it versus like a poly market or whatever sort of else off exchange thing that exists that maybe has a little bit more
03:26risk within it. Yeah. If you think about that crossover and it's not just those markets you've got other markets that are looking to
03:31provide not just predictive pieces but stepping into other tokens on equities things like that. If they're going to move into the
03:38investment space. Why wouldn't we expect that everything we've built around investor protection liquidity
03:43enhancements separation of assets. Why wouldn't that apply there. What do we want that same protection. So I do think that there is an
03:50element that there's a there's a blow up waiting to happen on some of these. That's going to put a shine you know shine a light on it.
03:55And we're going to look to OK how do we bring the same kind of scrutiny to this just like we bought to crypto markets a
04:00couple of years ago. By the way just quickly about 45 seconds. Are you are you staffing up with ETFs. There's been a
04:05divergence with some of the some of the exchanges on whether they're adding or subtracting. We are adding. So ETFs both in the
04:12index building to create indices for ETFs but also the support of ETFs in the Toronto Stock Exchange. This year we've already
04:18launched listed over 200 new ETFs. So this is absolutely a place we're investing in Canada in the U.S. and also in Europe
04:25as well to help build out the European market.
Be the first to comment