Canada's TMX Group sees record trading surge

Canada's largest derivatives exchange, TMX Group, is experiencing a surge in trading due to rising geopolitical tensions in North America. Trading volumes in rates futures and options have reached record highs, with a 35% increase in February compared to last year. The volatility in Canada's stock market has been particularly pronounced, with a spike in the benchmark index's 20-day volatility. TMX Group's stock has risen 13% this year, contrasting with a slight decline in the broader market. Overall, TMX Group's derivatives trading revenue increased by 32% in 2024, driven by a significant rise in ETF options trading. The demand for protective financial products is also growing, reflecting the current market uncertainty.