Canadian Annual Derivatives Conference Summary Jun 2023

Laurence Jones FIX Americas Regional Director

FIX recently attended the Canadian Annual Derivatives Conference, Canada’s leading derivatives conference which is a 1-day event held in Montreal, Canada. Hosted by TMX, the event had an agenda full of industry-relevant topics covering trading & execution, digital assets, regulatory drivers as well as changes to interest rates in the Canadian market. Add in a market opening ceremony live from the event and it was a great day of thoughtful content and networking.

The event kicked off with a welcome from TMX and then into a ‘Leader’s exchange’ where the panellists discussed the current market landscape, the view that equity markets (both Canadian as well as US) are pricing very high on certain stocks, and that the recent large spikes from companies such as NVDA may see an expected soft landing become more of a hard landing if the high pricing continues. One panellist noted that the main gain in the S&P500 is from 7 listed stocks; removing those to become an S&P493 would look relatively flat.

There was a lot of discussion on ETF markets and the key players in this space. NBC were the first in Canada to offer a synthetic ETF and ETF option volumes were up 70% YoY at TMX. The FIX community is actively discussing ETFs across APAC, EMEA and the Americas and with the moves to T+1 settlement there is far more focus on ETF’s.

TMX stated that they have been becoming more global and have been making it easier for market participants outside of Canada to access. However, with the move to T+1, this could have a reverse effect on the opportunities for participants located in EMEA and APAC.

Further details can be found on this link, Canadian Annual Derivatives Conference Summeary June 2023