Aequitas Innovations has entered the Canadian capital markets to establish a new stock exchange that promises to restore what it calls the “original purpose” of an exchange: the efficient allocation of capital between issuers and investors as a central force driving the Canadian economy.
The current stock exchange in Canada is TMX Group, with which Aequitas hopes to compete. The CEO of Aequitas exchange is Jos Schmitt, who started Alpha Group as a rival platform to TMX. He left the company in October after it was bought, along with Canadian Depository for Securities Ltd., to combine with TMX for $3.73 billion.
“We are seeking to apply innovation, technology and competition to improve fairness and efficiency in the markets with particular attention to the benefits of investors and issuers,” said a release from the firm.
“Our stakeholders are professional money managers, pension funds, institutional and retail brokers and Canadian issuers, who believe there should be a level playing field for all market participants. A new and different exchange that strikes the right balance between liquidity, price discovery and cost efficiency, and enhances markets for the long-term investor.”
“We are at a crossroads for our markets and we believe that competition will enhance confidence in Canada’s capital markets, but more of the same won’t address the issues that exist. Instead, we will tap innovation and technology to promote liquidity, fairness, cost savings and economic growth.”
Aequitas’s founding investors include Barclays and the Royal Bank of Canada, amongst others.
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