TMX Group Eyes Expansion Amid IPO Resurgence

TMX Group anticipates a significant increase in stock market listings by 2026, fueled by a strong pipeline of companies looking to access capital markets. The Toronto Stock Exchange operator is expanding its U.S. foothold and exploring new trading systems, while maintaining a cautious stance on prediction markets.

TMX Group, the operator of the Toronto Stock Exchange, is poised for a resurgence in public listings as it approaches 2026, thanks to a robust pipeline of companies eager to access capital markets in the near future, executives told Reuters. Canadian IPO activity has lagged behind this year compared to the booming U.S. market, largely due to tariffs imposed by U.S. President Donald Trump on Canadian imports, experts in the capital markets field note.

The recent $499.01 million initial public offering of energy firm Rockpoint Gas Storage has ignited optimism for a rebound in Canadian listings. In the U.S., IPOs have amassed about $30 billion this year, up nearly 13% from last year's figures, according to LSEG data. "The U.S. generally leads the IPO market in terms of liquidity," said TMX CEO John McKenzie. "Successful deals in the U.S. are providing similar conditions in Canadian markets, encouraging a promising pipeline of potential deals."

TMX is spearheading an expansion of its AlphaX US off-exchange trading platform and a new alternative trading system for fixed-income within the U.S. The Toronto-based firm, which generates over half of its revenue outside Canada, recently established a New York office and acquired VettaFi Holdings for $1 billion. Yet, TMX remains cautious about entering prediction markets despite increasing investor interest, opting to prioritize client safety and demand-based expansion according to McKenzie.

(With inputs from agencies.)