TMX Group recently invested in VettaFi, which it described as “a US-based, privately owned data, analytics, indexing, digital distribution, and thought leadership company,” and TMX Chief Operating Officer Jay Rajarathinam spoke with JLN about the investment and other happenings at the exchange group.
Rajarathinam said TMX was seeking to expand into more information businesses and cited the acquisition of Wall Street Horizon as an example. Wall Street Horizon is a provider of global market-moving action and global corporate event data.
He said there is more client demand for ETF services and TMX desires to create new exciting products for clients in partnership with VettaFI, not only in Canada, but also globally.
Rajarathinam said the VettaFi investment leverages the data sets and sales capabilities of VettaFi and uses its deep industry expertise in industry calculation.
TMX wants to expand its distribution capability and provide more information services to a global client base, he said. TMX invested $175 million US in VettaFi for a 21 percent interest. The exchange group gets two seats on the VettaFi board and will wait and see whether it makes sense to acquire the firm outright, Rajarathinam said.
This is not the only index company TMX deals with, Rajarathinam said, noting the exchange group’s deal with S&P. However, this deal gives TMX the ability to develop specific products, including thematic indexes, custom indexes and, perhaps, a global mining index.
This deal is deeply integrated into the TMX Datalinx business, and there is a heavy focus on growth and becoming more global and more of an information company, he said.