TMX Group Limited

Thank you for standing by. This is your conference operator. Welcome to the TMX Group Limited Third Quarter 2025 Results Conference Call. As a reminder, all participants are in a listen-only mode, and the conference call is being recorded. Following a prepared remarks, there will be an opportunity for analysts to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to Mr. Amin Mousavian, Vice President of Investor Relations and Treasurer and Interim Chief Risk Officer. Please go ahead, Mr. Mousavian.

Amin Mousavian, Vice President of Investor Relations and Treasurer and Interim Chief Risk Officer. Good morning, everyone. We join you from our Montreal office today to discuss the 2025 third quarter results for TMX Group. We announced our results for another outstanding quarter. and our fifth consecutive double-digit revenue growth, highlighting strong performance across all of our business units. Copies of our press release and MD&A are available on TMX.com under investor relations. This morning we have with us John McKenzie, our chief executive officer, and David Arnold, our chief financial officer. Following the opening remarks, we'll have a question and answer session. Before we begin, let's cover our forward-looking legal disclosure. Certain statements made during the call may relate to future events and expectations and constitute forward-looking information within the meaning of the Canadian securities law. Actual results may differ materially from these expectations, and additional information is contained in our press release and periodic reports that we have filed with the regulatory authorities. Now I will turn the call over to John.

Thanks, Amin, and good morning. And bonjour tout le monde. Merci de vous joindre à l'appel d'aujourd'hui. Good morning, everyone, and thank you for joining the call this morning, broadcasting to you live from our Montreal office on a beautiful morning here in La Belle-Provence. Now, as Amin mentioned, we announced third quarter results last night, and TMX delivered outstanding performance in the quarter, highlighted by strong year-over-year growth in revenue, adjusted earnings per share, and operating leverage. And as David will cover the quarter in more detail in a few minutes, I'm going to focus my remarks this morning to provide important context around how our year-to-date progress sets the stage for future success. At last year's Investor Day, we unveiled an ambitious strategy we've been working on for a number of years called TM2X. And I say ambitious because what we needed to do was shift the organizational mindset to a growth mindset from incremental to transformational. It took the organization 14 years to get from a half a billion dollars in total revenue to a billion. But our aim was to double that pace to reach 2 billion in five to seven years. And we are well on the way. People across our enterprise have embraced this challenge. And I'm happy to report that as we move along in the fourth quarter, we are delivering on the promise of bigger and faster. And we are now five consecutive quarters of double-digit growth into the TM2X journey, well on our way. So turning to our results for the first three quarters of 2025. Our overall revenue increased 18% compared to 2024, reflecting gains across all business lines, highlighted by double-digit growth from derivatives and clearing, equities trading, and global insights. Our organic growth, excluding acquisitions, increased 16%, and adjusted diluting earnings per share increased 25% from the first nine months of last year. Our results showcase the power of a unique, diverse portfolio of interconnected global businesses, as well as the resiliency of our market ecosystem. And 2025 success stories span the entire enterprise, across established traditional business areas, as well as new business areas and geographies. Our overall operating expenses for the first nine months increased as well, year over year, reflecting expenses related to recent acquisitions and continued investment in organic growth. And David will walk through the expenses in more detail following my comments this morning. Now, moving through some of our business area highlights. Trading activity on core domestic markets remained strong throughout the first nine months. Revenue from derivatives trading and clearing, excluding box, increased 32% year-over-year, driven by strong trading activity across both equity and interest rate derivatives. The first nine months also featured continued upward momentum in our Government of Canada Bond Futures products, supported by a record open interest and increased client adoption. Macro-environmental and geopolitical factors drove record investor demand for derivative instruments. MX overall open interest reached an all-time high of 33 million contracts in September and finished the month 57% higher than at the same date last year. On the equity trading side, increased activity due to market volatility as well as higher yields on premium products drove revenue gains. Overall revenue from equities and fixed income trading and clearing increased 11% compared to the first nine months of 2024. On a combined basis, TSX, TSX Venture, and Alpha Volumes increased 22% year-over-year. Now, looking beyond Canada, building on our early success, Alpha X US, our new U.S. equities trading venue, continued its impressive growth trajectory during Q3. Market share grew 30%, and average daily volume increased more than 30% quarter over quarter. But what we are most encouraged about is the pace of industry adoption, with approximately 30 participants now connected, representing a range of firms, all connected to Alphax US. Turning now to the global insights, this has been a key contributor to our tremendous year-over-year performance, and a propulsive force in our strategic growth. Revenue during the first nine months increased 16%, compared to 2024, led by double-digit increases from TMX TradePort and TMX Vetify. TMX TradePort revenue grew 21% year-over-year, or 14% in pounds sterling, driven by a number of factors, primarily an increase in the number of licensees and increased adoption of analytics and other trader products. TradePort's forward strategy is focused on three primary client-centric components – Strengthening the core dual network by investing to improve speed, scalability, and reliability while supporting enhanced capabilities in product innovation. Number two, expanding into new asset classes and geographies. And three, adapting to address the evolving needs of energy trading clients with innovative data analytics tools. Revenue from TMX Vetify increased 24% compared to the first nine months of last year, or 20% in U.S. dollars. due to higher indexing revenue driven by organic growth in assets under management and recent acquisitions. TMX Ventify continues to execute against an opportunistic expansion strategy, moving to capitalize on specialized long-term global trends. And so earlier this month, we acquired three indices that track the nuclear energy sector, crucial for AI infrastructure, from range fund holdings and North Shore indices, including the Range Nuclear Renaissance Index. These latest acquisitions expand TMX Vetify's industry-leading indexing platform to over 1,250 indices across a diverse group of major asset classes. Now, moving now to the third key component of Global Insights, TMX data links, we also made some news earlier this month. We acquired Verity, a leading buy-side investment research management system data and analytics provider. The addition of Verity brings a dynamic new financial data and proprietary analytics and capabilities, along with an expert group of professionals to our data links team to enhance the services we offer to more than 5,000 clients worldwide. And I'd like to take that quick opportunity to welcome the Verity team into TMX. Now turn into capital formation. The first nine months of revenue increased 8% when compared to 2024 due to higher revenue from additional listing fees and the inclusion of revenue from news files. You'll recall at the beginning of the year, we separated the capital formation segment into two primary components. Traditional capital formation, the role of our stock exchanges, TSX and TSX Venture, play in helping listed companies raise growth capital. And TMX Corporate Solutions, an end-to-end set of services, including TSX Trust and News File, to serve the needs of public and private companies through all their capital raising activity and stages of evolution. And we established then a long-term objective of generating over 50% of the revenue from capital formation from these corporate solutions. But the story of this recorder is actually really about capital raising itself and the strength of our public market ecosystem. Combined, TSX and TSX Venture market capitalization reached a record high in the quarter, topping $6 trillion for the first time, highlighted by a trillion dollars in the mining sector alone, also an all-time high. And most importantly, we are also seeing sustained positive momentum in activity at the crucial foundation of the ecosystem. Led by a surge in the mining sector, equity financing dollars raised by TSX Venture issuers increased 67% through the first nine months compared to that same period last year. And over the past few quarters, we've talked about our efforts working closely with a well-defined pipeline of private companies to prepare them to join our ecosystem. Earlier this month, we proudly welcomed Calgary-based Rock Point Gas Storage to the Toronto Stock Exchange, the largest independent owner and operator of natural gas storage in North America. The company raised over $700 million during its IPO, and we are hopeful that this is a signal to the community of issuer prospects and to the entire marketplace that the conditions for going public are right and that we are on the cusp of a robust IPO season. Growth momentum also continued through the third quarter in Canada's ETF industry, Through September 30th, 200 new ETFs listed on Toronto Stock Exchange this year, surpassing the full-year record set in 2024. And now as I close, I'd really like to take a moment to thank our employees around the world for their continued and essential contributions to our success. TMX has an impressive track record of leadership and innovation, and we have a long, proud history. Last Friday marked TMX's 173rd birthday, And in two weeks, we will celebrate 23 years as a publicly traded company. And I believe in celebrating our milestones. Those of you who have followed us through the years have seen the yellow evolution from a regional exchange operator into a global competitive force. Now, to be clear, I haven't been here for 173 years, but it's been my absolute privilege to work here during the most transformative era. And I feel very strongly that we're on a course for an even brighter future. As we move forward towards the end of this year, we are equipped and emboldened to take TMX to new heights, from promise to delivery, ambition to execution. And with that, let me turn the call over to David. Thank you.