01:47:14 EDT Wed 15 May 2024
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TMX Group Ltd
Symbol X
Shares Issued 277,946,120
Close 2023-10-30 C$ 29.81
Market Cap C$ 8,285,573,837
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TMX Group earns $85.3-million in Q3 2023

2023-10-30 18:39 ET - News Release

Mr. John McKenzie reports

TMX GROUP LIMITED REPORTS RESULTS FOR THIRD QUARTER OF 2023

TMX Group Ltd. has released results for the third quarter ended Sept. 30, 2023.

Commenting on results for the first nine months of 2023, John McKenzie, chief executive officer of TMX Group, said:

"TMX's positive results for the first three quarters of 2023 stand as compelling evidence of the enduring efficacy of our long-term strategy to diversify, globalize and innovate across our business. Higher overall revenue was driven by double-digit, year-over-year growth from global solutions, insights and analytics, including Trayport and TMX Datalinx, and increased revenue from derivatives trading and clearing, excluding BOX. Partially offsetting these increases, revenue from capital raising activity, and equities and fixed income trading, was lower compared to the first nine months of 2022 due to persistent challenges in market conditions. Moving forward, TMX's priority focus is on serving clients around the world with excellence, while pushing the evolution of the organization to meet the needs of modern capital markets stakeholders long into the future."

Commenting on performance in the third quarter of 2023, David Arnold, chief financial officer of TMX Group, said:

"Our financial results for the third quarter once again reflect the intrinsic strength of our balanced business model, as we achieved positive revenue and earnings-per-share growth amidst challenging market conditions. TMX reported 8-per-cent growth in revenue and 7-per-cent growth in diluted earnings per share (3 per cent on an adjusted basis) year over year, reflecting increases across some of our key business areas. Higher overall revenue was driven by increases from recurring sources, a 19-per-cent increase in revenue from GSIA, including Trayport and TMX Datalinx, and higher revenue from derivatives trading and clearing (excluding BOX), and CDS. Increases were partially offset by the negative impacts of lower activity in capital raising and equities trading."

1 Adjusted diluted earnings per share is a non-GAAP ratio.

Results of operations 2

Quarter ended Sept. 30, 2023 (Q3 2023) compared with quarter ended Sept. 30, 2022 (Q3 2022) 5

Net income attributable to equity holders of TMX Group and earnings per share

Net income attributable to equity holders of TMX Group in Q3 2023 was $85.3-million, or 31 cents per common share on a basic and diluted basis, compared with a net income attributable to equity holders of TMX Group of $81.0-million, or 29 cents per common share on a basic and diluted basis for Q3 2022. The increase in net income attributable to equity holders of TMX Group reflects an increase in income from operations of $2.7-million from Q3 2022 to Q3 2023 driven by an increase in revenue of $20.5-million partially offset by an increase in operating expenses of $17.8-million. The increase in revenue from Q3 2022 to Q3 2023 reflects higher revenue from global solutions, insights and analytics, derivatives trading and clearing (excluding BOX), CDS, and TSX Trust, partially offset by lower listings, equity and fixed income trading, and BOX Options Market LLC (BOX) revenue. Q3 2023 revenue also included $1.8-million related to Wall Street Horizon Inc. (acquired Nov. 9, 2022). The higher expenses included $6.7-million related to BOX's estimate of increased expenses for services provided by BOX Exchange LLC (8), as well as approximately $2.1-million of expenses related to WSH, of which there was approximately $400,000 related to amortization of acquired WSH intangibles. There were also higher expenses reflecting higher head count and payroll costs, employee performance incentive plan costs, consulting and legal fees, and IT (information technology) operating costs. Somewhat offsetting these increases was $3.5-million in integration costs related to AST Canada incurred in Q3 2022.

5 TMX Group completed a five-for-one split of its common shares outstanding (the Stock Split) effective at the close of business on June 13, 2023. All common share numbers and per share amounts in this release, including comparative figures, have been adjusted to reflect the Stock Split.

6 Adjusted net income is a non-GAAP measure, see discussion under the heading "Non-GAAP Measures".

7 Adjusted earnings per share is a non-GAAP ratio, see discussion under the heading "Non-GAAP Measures".

8 BOX Exchange LLC is a national securities exchange registered with the Securities and Exchange Commission, and is responsible for regulating and monitoring activities of BOX Options Market LLC, to ensure compliance with BOX Exchange rules and U.S. federal securities laws. TMX has a 40 per cent equity and a 20 per cent voting interest in BOX Exchange LLC.

The increase in earnings per share was also partially attributable to decreased net finance costs, somewhat offset by an increase in the number of weighted average common shares outstanding from Q3 2022 to Q3 2023, and higher income tax expense.

Adjusted net income attributable to equity holders of TMX Group (9) and adjusted earnings per share (10) reconciliation for Q3 2023 and Q3 2022 (11)

The financial results have been adjusted for the following:

  • The amortization expenses of intangible assets in Q3 2022 and Q3 2023 related to the 2012 Maple transaction (TSX, TSXV, MX, CDS, Alpha, Shorcan), TSX Trust, Trayport (including VisoTech and Tradesignal), AST Canada, and BOX, and the amortization of intangibles related to WSH in Q3 2023. These costs are a component of Depreciation and amortization expenses.
  • Fair value gain on contingent consideration, reflecting a reduction in the earn-out liability assumed as part of the WSH acquisition in Q4/22. The gain is included in Net Finance Costs.
  • Integration costs related to integrating the AST Canada acquisition in Q3 2022. These costs are included in Depreciation and amortization,
  • Compensation and benefits and Selling, general and administration.
  • A decrease in deferred income tax liabilities which decreased income tax expenses in Q3 2022 relating to a decrease in the Pennsylvania and Nebraska future income tax rates.

9 Adjusted net income is a non-GAAP measure, see discussion under the heading "Non-GAAP Measures". 10 Adjusted earnings per share is a non-GAAP ratio, see discussion under the heading "Non-GAAP Measures". 11 TMX Group completed a five-for-one split of its common shares outstanding (the Stock Split) effective at the close of business on June 13, 2023. All common share numbers and per share amounts in this release, including comparative figures, have been adjusted to reflect the Stock Split. 12 Includes amortization expense of acquired intangibles including BOX, AST Canada, and Tradesignal in Q3 2022 and Q3 2023 and WSH in Q3 2023 13 Includes costs related to the integration of AST Canada (acquired August 12, 2021) in Q3 2022. 14 For additional information, see discussion under the heading "Additional Information - Net Finance Costs".

15 Future reductions in income tax rates in Pennsylvania and Nebraska.

16 Adjusted net income is a non-GAAP measure, see discussion under the heading "Non-GAAP Measures".

Adjusted net income attributable to equity holders of TMX Group increased by 3 per cent from $93.7-million in Q3 2022 to $96.8-million in Q3 2023 largely driven by higher revenue and lower net finance costs, partially offset by higher operating expenses and higher income tax expense.

Adjusted diluted earnings per share increased by 1 cent from 34 cents in Q3 2022 to 35 cents in Q3 2023, reflecting an increase in income from operations and lower net finance costs. The increase in adjusted earnings per share was somewhat offset by an increase in the number of weighted average common shares outstanding and higher income tax expense from Q3 2022 to Q3 2023.

17 Includes amortization expense of acquired intangibles including BOX, AST Canada, and Tradesignal in Q3 2022 and Q3 2023, and WSH in Q3 2023.

18 Includes costs related to the integration of AST Canada (acquired August 12, 2021) in Q3 2022.

19 Adjusted earnings per share is a non-GAAP ratio, see discussion under the heading "Non-GAAP Measures". Fair Value Gain on Contingent Consideration and Change in Deferred Income Tax Liabilities Relating to Changes in Future Tax Rates are not presented in the reconciliation due to the size of the adjustment being less than a penny.

Revenue

Revenue was $287.3-million in Q3 2023, up $20.5-million or 8 per cent from $266.8-million in Q3 2022, attributable to increases in revenue from global solutions, insights and analytics, derivatives trading and clearing (excluding BOX), and equities and fixed income trading, and clearing, partially offset by decreases in capital formation and a $1.9-million decrease in BOX revenue. The increase in revenue from Q3 2022 to Q3 2023 included $1.8-million of revenue for WSH (acquired Nov. 9, 2022). Excluding revenue from WSH, revenue was up 7 per cent in Q3 2023 compared with Q3 2022.

Operating expenses

Operating expenses in Q3 2023 were $162.0-million, up $17.8-million or 12 per cent, from $144.2-million in Q3 2022, primarily driven by $6.7-million related to BOX's estimate of increased expenses ($4.6-million in H1 2023 and the remaining $2.1-million in Q3 2023) for services provided by BOX Exchange LLC. The increase from Q3 2022 to Q3 2023 included approximately $2.1-million related to WSH (acquired Nov. 9, 2022), of which there was approximately $400,000 related to WSH's amortization of acquired intangibles. There were also higher expenses reflecting higher head count and payroll costs, employee performance incentive plan costs, consulting and legal fees, and increased IT operating costs.

Somewhat offsetting these increases was $3.5-million in integration costs related to AST Canada incurred in Q3 2022.

Excluding the above-mentioned expenses for BOX, WSH and AST Canada, operating expenses increased 9 per cent in Q3 2023 compared with Q3 2022.

Additional Information

Share of (loss) income from equity-accounted investments

In Q3 2023, our share of loss from equity-accounted investments decreased by $0.3-million. For Q3 2023, our share of (loss) income from equity-accounted investments includes VettaFi20, Ventriks, and other equity accounted investments, compared with Q3 2022, which included SigmaLogic and Ventriks.

Net finance costs

The decrease in net finance costs from Q3 2022 to Q3 2023 reflected higher interest income on funds invested of $4.5-million as a result of higher interest rates, and a $0.1-million fair value gain on contingent consideration, reflecting a reduction in the earn-out liability assumed as part of the WSH acquisition, somewhat offset by higher interest expense on borrowings, and higher foreign exchange losses of $0.8-million.

Income tax expense and effective tax rate

Excluding adjustments, primarily related to the items noted below, the effective tax rate would have been approximately 27 per cent, excluding NCI, for Q3 2023, an increase of 1 per cent from Q3 2022 primarily due to an increase in the U.K. corporate income tax rate from 19 per cent to 25 per cent effective April 1, 2023. A blended tax rate of 23.5 per cent was applied through the tax year as required for corporations with a December 31st year-end.

In Q3 2023, there were non-taxable FX gains resulting from the unrealized translation of monetary assets and liabilities.

In Q3 2022, Pennsylvania and Nebraska announced future reductions in income tax rates, which decreased the deferred income tax liabilities, resulting in a corresponding decrease in income tax expense.

Net income attributable to non-controlling interests

The decrease in net income attributable to non-controlling interests (NCI) for Q3 2023 compared to Q3 2022 is primarily due to lower net income in BOX driven by lower revenue and higher operating expenses, including an increase in BOX's estimate of expenses for services provided by BOX Exchange LLC.

Nine months ended September 30, 2023 (FNM/23) Compared with nine months ended September 30, 2022 (FNM/22) 21

The information below reflects the financial statements of TMX Group for the nine months ended September 30, 2023 (FNM/23) compared with the nine months ended September 30, 2022 (FNM/22).

Net Income attributable to equity holders of TMX Group and Earnings per Share

Net income attributable to equity holders of TMX Group in FNM/23 was $271.6-million, or $0.98 per common share on a basic and $0.97 on a diluted basis, compared with $440.5-million, or $1.58 per common share on a basic and $1.57 on a diluted basis, for FNM/22. The decrease in net income attributable to equity holders of TMX Group is largely due to a non-cash gain of $177.9-million being recognized in Q1/22 resulting from the revaluation of our interest in BOX upon acquisition of voting control, partially offset by an increase in income from operations of $9.9-million. The increase in income from operations from FNM/22 to FNM/23 was driven by an increase in revenue of $53.4-million, reflecting higher revenue from Global Solutions, Insights and Analytics, TSX Trust, Derivatives Trading and Clearing (excl. BOX), and CDS, partially offset by lower Listing, Equity and Fixed Income trading, and BOX revenue. The revenue increase also included $5.3-million related to WSH, and $0.2-million for SigmaLogic. There was also an increase in operating expenses of $43.5-million, which included $8.0-million of expenses related to SigmaLogic, WSH, and VettaFi, of which there was approximately $1.5-million related to amortization of acquired intangibles for WSH, as well as $0.8-million related to acquisition and related expenses for SigmaLogic, WSH and VettaFi. The increase from FNM/22 to FNM/23 also included $6.7-million related to BOX's estimate of increased expenses for services provided by BOX Exchange LLC, as well as higher expenses related to higher headcount and payroll costs, employee performance incentive plan costs, increased IT operating costs, revenue related expenses, and higher costs for travel and entertainment.

21 TMX Group completed a five-for-one split of its common shares outstanding (the Stock Split) effective at the close of business on June 13, 2023. All common share numbers and per share amounts in this release, including comparative figures, have been adjusted to reflect the Stock Split.

22 Adjusted net income is a non-GAAP measure, see discussion under the heading "Non-GAAP Measures".

23 Reflects an adjustment increasing the income tax effect for the H1 2023 by $1.4-million.

24 Adjusted earnings per share is a non-GAAP ratio, see discussion under the heading "Non-GAAP Measures".

25 Reflects an adjustment increasing the income tax effect for the H1 2023 by $1.4-million.

The increase in earnings per share was also partially attributable to a decrease in the number of weighted average common shares outstanding from FNM/22 to FNM/23, as well as lower net finance costs, partially offset by higher income tax expense.

Adjusted Net Income 26 attributable to equity holders of TMX Group and Adjusted Earnings per Share 27 Reconciliation for FNM/23 and FNM/22

The financial results have been adjusted for the following:

  • The amortization expenses of intangible assets in the nine months ended September 30, 2022 and the nine months ended September 30, 2023 related to the 2012 Maple transaction (TSX, TSXV, MX, CDS, Alpha, Shorcan), TSX Trust, Trayport (including VisoTech and Tradesignal), AST Canada, and BOX, and the amortization of intangibles related to WSH in the nine months ended September 30, 2023. These costs are a component of Depreciation and amortization expenses.
  • Acquisition and related costs in the nine months ended September 30, 2022 and the nine months ended September 30, 2023 related to the SigmaLogic transaction (equity-accounted prior to the acquisition of control in February 2023 and divested in April 2023). The nine months ended September 30, 2023 includes acquisition related costs of WSH (acquired November 9, 2022), and the equity-accounted investment in VettaFi (January 2023). The nine months ended September 30, 2022 includes acquisition related costs for the equity investment in Ventriks (June 2022). These costs are included in Compensation and benefits,
  • Selling, general and administration and Net Finance Costs.
  • Gain resulting from the sale of 100 per cent of our interest in SigmaLogic to VettaFi (effective April 21, 2023), net of divestiture costs in the nine months ended September 30, 2023. This gain is included in Other Income while the costs are included in Selling, general and administration.
  • Fair value gain on contingent consideration, reflecting a reduction in the earn-out liability assumed as part of the WSH acquisition in the nine months ended September 30, 2023. This gain is included in Net Finance Costs.
  • Integration costs related to integrating the AST Canada acquisition in the nine months ended September 30, 2022. This cost is included in Selling, general and administration, and Depreciation and amortization
  • Compensation and benefits, and Information and trading systems.
  • Gain resulting from the revaluation of our interest in BOX upon acquisition of voting control (effective January 3, 2022) in the nine months ended September 30, 2022. This gain is included in Other Income.
  • A decrease in deferred income tax liabilities which decreased income tax expenses in the nine months ended September 30, 2022 relating to a decrease in the Pennsylvania and Nebraska future income tax rates.

26 Adjusted net income is a non-GAAP measure, see discussion under the heading "Non-GAAP Measures".

27 Adjusted earnings per share is a non-GAAP ratio, see discussion under the heading "Non-GAAP Measures".

Adjusted net income attributable to equity holders of TMX Group increased by 1 per cent from $301.7-million in FNM/22 to $306.1-million in FNM/23 largely driven by an increase in income from operations and lower net finance costs, partially offset by higher income tax expense.

28 Includes amortization expense of acquired intangibles including BOX, AST Canada, and Tradesignal in FNM/22 and FNM/23, and WSH in FNM/23.

29 Reflects an adjustment increasing the income tax effect for the H1 2023 by $1.4-million.

30 FNM/22 and FNM/23 includes transaction costs for SigmaLogic (equity-accounted prior to the acquisition of control in February 2023). FNM/23 also includes acquisition related costs of WSH (acquired November 9, 2022), and equity investment in VettaFi (January 2023). See Initiatives and Accomplishments for more details.

31 Includes costs related to the integration of AST Canada (acquired August 12, 2021) in FNM/22.

32 Gain resulting from the sale of SigmaLogic (effective April 21, 2023). See Initiatives and Accomplishments - GSIA - SigmaLogic Transaction for more details.

33 For additional information, see discussion under the heading "Additional Information - Net Finance Costs".

34 Gain resulting from the revaluation of our interest in BOX upon acquisition of voting control (effective January 3, 2022), in FNM/22.

35 FNM/22 includes decrease in deferred income tax liabilities due to future reductions in income tax rates in Pennsylvania and Nebraska.

36 Adjusted net income is a non-GAAP measure, see discussion under the heading "Non-GAAP Measures".

Adjusted diluted earnings per share increased by 2 cents from $1.08 in FNM/22 to $1.10 in FNM/23 reflecting an increase in income from operations, lower net finance costs, and a decrease in the number of weighted average common shares outstanding from FNM/22 to FNM/23, partially offset by higher income tax expense.

37 Includes amortization expense of acquired intangibles including BOX, AST Canada, and Tradesignal in FNM/22 and FNM/23, and WSH in FNM/23.

38 FNM/22 and FNM/23 includes transaction costs for SigmaLogic (equity-accounted prior to the acquisition of control in February 2023). FNM/23 also includes the acquisition related costs of WSH (acquired November 9, 2022), and equity investment in VettaFi (January 2023). See Initiatives and Accomplishments for more details.

39 For additional information, see discussion under the heading "Additional Information - Net Finance Costs".

40 Includes costs related to the integration of AST Canada (acquired August 12, 2021) FNM/22.

41 Gain resulting from the revaluation of our interest in BOX upon acquisition of voting control (effective January 3, 2022), in FNM/22.

42 Adjusted earnings per share is a non-GAAP ratio, see discussion under the heading "Non-GAAP Measures". Gain on Sale of SigmaLogic, Net of Divestiture Costs and Change in Deferred Income Tax Liabilities Relating to Changes in Future Tax Rates are not presented in the reconciliation due to the size of the adjustment being less than a penny.

43 Reflects an adjustment increasing the income tax effect for amortization of acquired intangibles related to acquisitions for the H1 2023 by 1 cent.

44 The reconciliations for the Diluted adjusted earnings per share in FNM/23 and the Basic adjusted earnings per share in FNM/22 are presented without a rounding adjustment to ensure accuracy.

Revenue

Revenue was $892.6-million in FNM/23 up $53.4-million or 6 per cent compared with $839.2-million in FNM/22 attributable to increases in revenue from Global Solutions, Insights and Analytics, TSX Trust, Derivatives Trading and Clearing (excl. BOX), and CDS, partially offset by decreases in Listings, Equities and Fixed Income Trading, and a $9.2-million decrease in BOX revenue. The increase in revenue from FNM/22 to FNM/23 included $5.3-million of revenue for WSH, and $0.2-million of revenue for SigmaLogic (acquired control on February 16, 2023 and divested on April 21, 2023). Excluding revenue from WSH and SigmaLogic, revenue was up 6 per cent in FNM/23 compared with FNM/22.

Operating expenses

Operating expenses in FNM/23 were $480.8-million, up $43.5-million or 10 per cent, from $437.3-million in FNM/22. The increase from FNM/22 to FNM/23 reflected approximately $8.0-million of expenses related to SigmaLogic (control acquired February 16, 2023 and divested April 21, 2023), WSH (acquired November 9, 2022), and VettaFi (invested in January 2023), of which there was approximately $1.5-million related to amortization of acquired intangibles for WSH, as well as $0.8-million related to acquisition and related expenses for SigmaLogic, WSH and VettaFi. The increase from FNM/22 to FNM/23 also included $6.7-million related to BOX's estimate of increased expenses for services provided by BOX Exchange LLC, as well as higher expenses related to higher headcount and payroll costs, employee performance incentive plan costs, increased IT operating costs, revenue related expenses, and increased expenses for travel and entertainment.

Somewhat offsetting these increases were lower expenses of $9.7-million related to AST Canada and Ventriks, of which there was approximately $9.6-million in integration costs related to AST Canada, and $0.1-million in acquisition and related expenses for Ventriks. Excluding the above mentioned expenses for BOX, SigmaLogic, WSH, AST Canada, Ventriks, and VettaFi, operating expenses increased 9 per cent in FNM/23 compared with FNM/22.

Additional Information

Share of (loss) income from equity-accounted investments

In FNM/23, our share of loss from equity-accounted investments increased by $0.2-million. For FNM/23, our share of (loss) income from equity-accounted investments includes VettaFi45, SigmaLogic46, Ventriks, and other equity accounted investments compared with FNM/22, which included CanDeal47, SigmaLogic and Ventriks.

Other income

In FNM/23, we recognized a non-cash gain of $1.3-million resulting from the sale of 100 per cent of our interest in SigmaLogic to VettaFi in exchange for additional common shares in VettaFi.

In FNM/22, we recognized a non-cash gain of $177.9-million resulting from the revaluation of our interest in BOX upon acquisition of voting control (January 3, 2022).

Net finance costs

The decrease in net finance costs for FNM/23 compared to FNM/22 reflected higher interest income on funds invested of $12.8-million as a result of higher interest rates, and a $1.2-million fair value gain on contingent consideration, reflecting a reduction in the earn-out liability assumed as part of the WSH acquisition, somewhat offset by higher interest expense on borrowings, and higher foreign exchange losses of $5.6-million mainly due to acquisition and related costs in FNM/23.

45 Equity-accounted investment as of January 9, 2023.

46 Consolidated February 16, 2023 and divested April 21, 2023.

47 Effective February 28, 2022, TMX discontinued the application of the equity method of accounting for CanDeal.

Income tax expense and effective tax rate

Excluding adjustments, primarily related to the items listed below, the effective tax rate would have been approximately 27 per cent, excluding NCI, for FNM/23, an increase of 1 per cent from FNM/22 primarily due to an increase in the U.K. corporate income tax rate from 19 per cent to 25 per cent effective April 1, 2023. A blended tax rate of 23.5 per cent was applied through the tax year as required for corporations with a December 31st year-end.

FNM/23

In FNM/23, there were non-deductible FX losses resulting from the unrealized translation of monetary assets and liabilities.

FNM/22

In FNM/22, there was a non-taxable gain resulting from the revaluation of our interest in BOX upon acquisition of voting control (effective January 3, 2022).

In FNM/22, we recognized a deferred tax asset relating to historical tax losses not previously recognized for VisoTech, resulting in a corresponding decrease in income tax expense of $0.9-million.

In FNM/22, Pennsylvania and Nebraska announced future reductions in income tax rates, which decreased the deferred income tax liabilities, resulting in a corresponding decrease in income tax expense.

Net income attributable to non-controlling interests

The decrease in net income attributable to non-controlling interests (NCI) for FNM/23 compared to FNM/22 is primarily due to lower net income in BOX driven by lower revenue and higher operating expenses, including an increase in BOX's estimate of expenses for services provided by BOX Exchange LLC.

FINANCIAL STATEMENTS GOVERNANCE PRACTICE

The Finance & Audit Committee of the Board of Directors of TMX Group (Board) reviewed this press release as well as the Q3 2023 unaudited condensed consolidated interim financial statements and related Management's Discussion and Analysis (MD&A) and recommended they be approved by the Board of Directors. Following review by the full Board, the Q3 2023 unaudited condensed consolidated interim financial statements, MD&A and the contents of this press release were approved.

CONSOLIDATED FINANCIAL STATEMENTS

Our Q3 2023 unaudited condensed consolidated interim financial statements are prepared in accordance with IFRS and are reported in Canadian dollars unless otherwise indicated. Financial measures contained in the MD&A and this press release are based on financial statements prepared in accordance with International Financial Reporting Standards (IFRS) and IFRS Interpretations Committee ("IFRIC") interpretations, as issued by the International Accounting Standards Board (IASB) for the preparation of interim financial statements, in compliance with IAS 34, Interim Financial Reporting, unless otherwise specified. All amounts are in Canadian dollars unless otherwise indicated.

ACCESS TO MATERIALS

TMX Group has filed its Q3 2023 unaudited condensed consolidated interim financial statements and MD&A with Canadian securities regulators. This press release should be read together with our Q3 2023 unaudited condensed consolidated interim financial statements and MD&A. These documents may be accessed through SEDAR+ or on the TMX Group website. We are not incorporating information contained on the website in this press release. In addition, copies of these documents will be available upon request, at no cost, by contacting TMX Group Investor Relations by phone at +1 888 873-8392 or by e-mail at TMXshareholder@tmx.com.

About TMX Group (TSX:X)

TMX Group operates global markets, and builds digital communities and analytic solutions that facilitate the funding, growth and success of businesses, traders and investors. TMX Group's key operations include Toronto Stock Exchange , TSX Venture Exchange , TSX Alpha Exchange , The Canadian Depository for Securities , Montreal Exchange , Canadian Derivatives Clearing Corporation , and Trayport which provide listing markets, trading markets, clearing facilities, depository services, technology solutions, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across North America (Montreal, Calgary, Vancouver and New York), as well as in key international markets including London, Singapore, and Vienna

Teleconference / Audio Webcast

TMX Group will host a teleconference / audio webcast to discuss the financial results for Q3 2023.

Time: 8:00 a.m. - 9:00 a.m. ET on Tuesday October 31, 2023.

To teleconference participants: Please call the following number at least 15 minutes prior to the start of the event.

The audio webcast of the conference call will also be available on TMX Group's website under Investor Relations.

Teleconference Number: 416-764-8659 or 1-888-664-6392

Audio Replay: 416-764-8677 or 1-888-390-0541

The pass code for the replay is 869456.

We seek Safe Harbor.

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