TMX Group, Canada’s largest stock market operator, announced today that it has closed an equity investment to buy a minority stake in ETFLogic, a U.S.-based fintech company and leading provider of analytics and portfolio tools to investment fund manufacturers and the wealth management industry.
This investment follows the launch of TMX LOGICLY, a platform developed through a partnership between TMX and ETFLogic last year. The platform enables wealth management firms to analyze the risk and exposure, ESG factors, underlying liquidity, income and returns of ETFs listed in Canada.
TMX will partner with ETFLogic’s management team to boost the firm's growth through strategic initiatives like accelerating global expansion and enhancing new brand development.
TMX Group, which is best known for its stock exchange, Toronto Stock Exchange (TSX), has significant experience investing in various entities across the world.
ETFLogic boasts a strong portfolio of products including Logicly, the leading investment research, analytics and portfolio management tools, and solutions to the financial advisor community, asset managers, hedge funds, RIAs, ETF issuers, broker-dealers, financial institutions and compliance teams.
Building on its success, ETFLogic said that it will use the above-mentioned investment to continue expanding its portfolio of products and deepen its presence in the financial industry.
Jay Rajarathinam, the Chief Operating Officer of TMX Group, said: "TMX is committed to seeking out strategic opportunities to partner with innovative early-stage companies pushing the transformation of today's investment industry. We are excited to announce this investment in ETFLogic, as we continue our collaborative work on TMX LOGICLY to help bring ETF advisors and investors greater transparency and efficient access to valuable insights and tools."
Meanwhile, Emil Tarazi, the CEO and Co-Founder of ETFLogic, added: “Deepening our relationship with TMX, a company with a strong track record of innovation in the investment industry, is an exciting move forward for us. Working with TMX, we will strengthen our international distribution and further capitalize on the unique analytics and portfolio tools the ETFLogic team has built for firms and advisors. Empowering our users with better data and automation means that they can do better by their clients. Better, more confident portfolio outcomes are what LOGICLY is all about.”
Helping Investors Succeed with Cryptocurrency
Early this month, TMX Group announced plans to launch its first cryptocurrency futures product. The move by the firm comes in response to the growing demand for such products by institutional investors who look to offset the risks of crypto trading. The group plans to launch the crypto futures product on its Montreal Stock Exchange this year.
According to the group, many institutional investors and traders hold a huge number of cryptocurrencies within their portfolios or for their clients. Due to price volatility associated with cryptocurrencies, these investors are looking at how they can manage such exposures.
