Montréal Exchange (MX) is Canada’s oldest exchange and traces its roots back to the 1800s. Today, it operates as a fully electronic exchange that acts as the backbone of the Canadian derivatives industry.

A Brief History

Canada’s first-ever exchange was formed in 1832 and served as an informal stock exchange until 1874 when the Montreal Stock Exchange was officially formed. By the 1910s, the total value of shares traded was $2.1 million, more than double the typical volume of the rival The Toronto Stock Exchange.

Montreal was Canada’s commercial hub for most of the 1900s, and many financial institutions chose to build their headquarters close to the Montreal Stock Exchange.

Before the start of 2000, Montreal Exchange ceased to list stocks and all shares were transferred to either Toronto Stock Exchange or the Canadian Venture Exchange (now known as TSX Venture Exchange).

At the end of 2001, Montreal Exchange transitioned away from an open outcry system (i.e. brokers and traders on the floor shouting and using hand signals) to become fully electronic.

Montreal Exchange was ultimately acquired by TSX Group, the parent company of Toronto Stock Exchange. The combined entity, along with other exchanges like TSXV, became known as TMX Group.

MX Today: Products and Services

MX provides both individual and institutional investors in Canada and around the world several risk management products that can be used to hedge their investments. MX lists:

1. Equity Options
   Products include options on dozens of equities and ETFs with varying durations, from weekly options to three-year intervals.
   

2. Options on the U.S. Dollar
   Currency options operate the same way as stock and ETF options, with a strike price and expiration. Investors can buy a call option to profit from an appreciation in the U.S. dollar or take advantage of an option to hedge a portfolio of U.S. stocks.
   

3. Index Derivatives

   The S&P/TSX 60 Index* Standard Futures (SXF) is MX’s benchmark derivative product. Buying the index derivative gives investors long or short exposure to the entire S&P/TSX 60 Index in one single, cost-effective transaction.
   Investors can also purchase or short other indices, such as by trading the S&P/TSX 60 Index Mini Futures (SXM), which represents one-quarter of the trading unit of the SXF. Option products include sector-specific indices, such as the S&P/TSX Global Gold Index* (SXA) or the S&P/MX International Cannabis Index** (SMJ).
   

4. Interest Rate Derivatives
   Finally, investors can gain exposure to investment products linked to interest rates. The products range in duration from three-month Canadian Overnight Repo Rate Average (“CORRA”) to 30-year Government of Canada Bond Futures.
   
   

Copyright © 2022 TSX Inc. All rights reserved. Do not copy, distribute, sell or modify this document without TSX Inc.’s prior written consent.  This information is provided for information purposes only. Neither TMX Group Limited nor any of its affiliated companies guarantees the completeness of the information contained in this publication, and we are not responsible for any errors or omissions in or your use of, or reliance on, the information.  This publication is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied upon for such advice.  The information provided is not an invitation to purchase securities listed on Toronto Stock Exchange,TSX Venture Exchange and/or Montreal Exchange.  TMX Group and its affiliated companies do not endorse or recommend any securities referenced in this publication.  TMX, the TMX design, The Future is Yours to See., Toronto Stock Exchange, TSX, TSX Venture Exchange, TSXV, and Voir le futur. Réaliser l’avenir. are the trademarks of TSX Inc.  Montreal Exchange, MX, SMJ, SXA, SXF, and SXM are the trademarks of Bourse de Montréal Inc. and are used under license.  

* The S&P/TSX Composite Index, S&P/TSX 60 Index, S&P/TSX Global Gold Index (in this paragraph, the “Indices”) are the products of S&P Dow Jones Indices LLC or its affiliates ("SPDJI") and TSX Inc. ("TSX"). Standard & Poor's® and S&P® are registered trademarks of Standard & Poor's Financial Services LLC ("S&P"); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC ("Dow Jones"); and TSX® is a registered trademark of TSX. SPDJI, Dow Jones, S&P, their respective affiliates and TSX do not sponsor, endorse, sell or promote any products based on the Indices and none of such parties make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions or interruptions of the Indices or any data related thereto. 

** The S&P/MX International Cannabis Index  (the “Index”) is a product of S&P Dow Jones Indices LLC (“SPDJI”) and Bourse de Montreal Inc. (“MX”).  Standard & Poor’s® and S&P® are registered trademarks of Standard & Poor’s Financial Services LLC (“S&P”); Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC (“Dow Jones”); and MX® is a registered trademark of Bourse de Montreal Inc., used under license. SPDJI, Dow Jones, S&P and TSX do not sponsor, endorse, sell or promote any products based on the Index and none of SPDJI, Dow Jones, S&P, MX and affiliates of MX make any representation regarding the advisability of investing in such product(s) nor do they have any liability for any errors, omissions or interruptions of the Index or any data related thereto.