Montreal Exchange

Montreal Exchange

The Montreal Exchange (MX) happens to be Canada’s oldest exchange, which fails to halt it from being ultramodern. According to the MX’s website, they are contributing to the fight against global warming, thanks to the project together with the Chicago Exchange. They also offer some educational resources. Speaking of education, the MX sometimes provides data to academic researchers on certain conditions.

Concerning the MX’s everyday affairs, there are upwards of 40 rules and policies, several pages for each item, as regard to different matters. They currently work with equity, currency and ETF options as well as index, interest rate, and energy derivatives.

Back in 1832, the formation known today as the Montreal Exchange, made its first historical move: stocks were traded at the Exchange Coffee House. Montreal’s first Broker’s Association (for those trading in securities and commodities) was established in 1849. The glorious day when the Montreal Exchange, then called the Montreal Stock Exchange (MSE), sees its official foundation, by Charter, comes somewhat later in the year 1874 (prior to this date it was operational but informal). Stocks concentrate mainly on banking and railroads.

Time and history follow their courses. World War I begins in 1914. At that moment, 109 companies are catalogued, trading a total volume of 10,000 shares on a daily basis. In the aftermath of the war, in the 1920s, the exchange grows exponentially. Two years after the end of WWI, close to 12,000 shares are already traded daily.

Old Montreal. Youville street. Photo by ElenaB.

An infamous date: October 24, 1929. The MSE sells almost 400,000 (a record) shares on the day of the market crash.

In 1965, the MSE moves to the building it will still occupy in 2010, the Exchange Tower on Victoria Square. A hundred years after becoming formal, the MSE merges with the Canadian Exchange, an endeavor common among exchanges worldwide. A year later, the MSE will proudly act as the first Canadian exchange to offer stock options.

Further, the year is 1982. By now, the Montreal Stock Exchange trades not only in stocks, but also increasingly in options, futures and other financial instruments. The logical step of formally changing its name to Montreal Exchange is realized. Five years elapse and another major market correction shakes the world. The XXM (Canadian Market Portfolio Index) drops 300 points on October 19.

In 1990, the Electronic Order Book is implemented into floor equity trading. Moving on. Aside from celebrating its century plus a quarter birthday, the MSE starts working alongside GLOBEX ® Alliance, a pioneer in the electronic world of financial futures and option contracts trading.

In 2005, the 11th FINA (Aquatics) World Championship held in Montreal is made possible on account of the MSE. Chicago and Montreal exchanges begin working together to create the Climate Exchange, a market for environmental products. Toronto and Montreal Exchanges have fused in 2008, the explanation behind the TMX abbreviation. In the summer of 2010, the Canadian Heavy Crude Oil Differential Price Features (WCH) are recorded.

Reference:

TMX | Montreal Exchange: www.m-x.ca

Stock Exchange Tower

P.O. Box 61

800 Victoria Square

Mtl, Qc H4Z 1A9

Tel.: 514 871-2424

Fax: 514 871-3514