Exchange Insights from TSX and TSXV

Global investment banks seeking new business in Canada

As companies turn to Canada’s equity markets to raise capital, offshore investment bankers have

arrived to compete for their business. Domestic institutions continue to dominate the investment banking community in Canada, but offshore banks have increased their presence as well, both in number and activity. J.P. Morgan and Morgan Stanley now rank as the seventh and eighth-largest investment banks in the country, generating almost 7% of the industry’s fees between them. Credit Suisse, Macquarie Group and Barclays have also established a presence in Canada’s investment banking community.

“Canada’s investment banks are benefitting from a strong Canadian market for deals,” The Globe and Mail observed in 2012.

Last year, Cantor Fitzgerald expanded its operations in Canada when it hired the sales, trading, research and investment banking team of Versant Partners.

“We see an opportunity in the Canadian market to gain share,” said Laurence Rose, President and Chief Executive Officer of Cantor Fitzgerald Canada Corporation, “by enhancing our service offering to investors and issuers.”

Stifel Nicolaus expanded its Toronto office in 2010. The firm focuses on equity research, equity trading and corporate advisory services involving mergers and acquisitions, financing and restructuring transactions.

“With offices here, and more than 300 offices in the U.S., we have a platform that we can leverage globally on behalf of our clients in Canada,” says Dan Phaure, Managing Director of Investment Banking for Stifel Nicolaus Canada. “And for companies in the U.S. that need an alternative to the major exchanges in that country, we can introduce them to another source of liquidity through a listing on TSX or TSXV.”

Ranking among the world’s largest capital markets, Canada will continue to provide increasing opportunities for investment banks. “Canada has distinguished itself as a distinct economy,” says Robert Fotheringham, Senior Vice President, Equity Trading at TMX Group. “It no longer mirrors the f luctuations in the U.S., and provides investors with meaningful diversification in both currency and equity exposure.”