Deep Dive on Cboe Canada and Cboe Australia

Research evidence excerpt

Deep Dive on Cboe Canada and Cboe Australia

June 21, 2026 | 17:00 ET~

TMX Group

X-TSX Rating Price: Jun-19 Target Total Rtn Diversified Financials - Canada

Outperform $47.44 $65.00 39%

Étienne Ricard, CFA Analyst

etienne.ricard@bmo.com (416) 359-5296

Katy Chen, CPA* Associate

Deep Dive on Cboe Canada and Cboe Australia katy.chen@bmo.com (416) 564-0615

Legal Entity: BMO Nesbitt Burns Inc.

BMO Capital Markets Corp.*

Bottom Line: 2YR Price Volume Chart

This report further analyzes TMX's proposed acquisitions of Cboe Canada and Cboe 65

Australia. In Canada, TMX is set to cement its cash equities trading market share, 60

with potential for meaningful cost synergies (we estimate 30% of expense base).

50 5

In Australia, we value TMX's focused strategy of strengthening its mining leadership 4

45 3

although acknowledge revenue synergies could prove to be a longer-term benefit. 40 2

35 0

Key Points LHS: Price (C$) /DecRHS: Volume (mm)Jun Dec Source: FactSetJun

Earlier in April, TMX announced its intention to acquire Cboe Canada and Cboe Australia Company Data in C$

(press release and our first look). Dividend $0.96 Shares O/S (mm) 275.7

What revenue streams is TMX acquiring? Of the combined businesses (~$90M Yield 2.0% Market Cap (mm) $13,080

revenues), we estimate ~65% of the mix to be Global Insights (i.e., market data and

Net Debt (mm) $1,794 Wkly $Vol (000s) 427,922

connectivity fees); ~30% Trading (i.e., largely cash equities); and ~5% Capital Formation

(i.e., largely sustaining listing fees for ETFs). BMO Estimates in C$

(FY-Dec.) 2025A 2026E 2027E 2028EWhy is Cboe selling, and how could TMX invigorate growth? Under new leadership,

Cboe is undergoing a strategic realignment focusing on "core strengths". By contrast to Revenue (mm) $1,717 $1,920↑ $2,064↑ $2,192↑