TMX Group Limited (X.TO) Earnings Call Transcript & Summary

All right. Good morning, everybody. Welcome to our next session here. I'm Ben Budish, if any of you don't know me, I cover the U.S. brokers, asset managers exchanges. And for this next fireside chat. We've got David Arnold, CFO of TMX. David, thanks so much for being here.

Yes. Thanks for having me. It's good to be here, Ben, and always nice to be in New York.

Great to have you. Just to kick things off, broadly, can you talk a little bit about the macro backdrop from the Canadian perspective, how is volatility trade tensions with the U.S. things like that have been impacting the business?

Look, I mean, global uncertainty, quite frankly, and kind of the interest rate outlook, as you'd expect, Ben, continues to really drive elevated volumes across our marketplaces. We've seen open interest growth, it's -- I think it's around 60% year-to-date on the Montreal Exchange. And that's really driven out of a lot of the uncertainty and the volatility in the macroeconomic landscape. Equity volumes are up also quite substantially on 14% year-over-year. So that's good. But when I look beyond the volatility that's really coming from the macroeconomic conditions, it's looking at some of the things we've done, some of our new product launches and innovations have really helped us. Some of the sunsetting of some of our market-making programs. So those are the things that underlie or almost being overshadowed by the macroeconomic kind of factors.

Great. Along the same lines, we get asked about the IPO market a lot in the U.S. What are you seeing from the Canadian perspective? What does the current pipeline look like? How are you feeling about the next 6 to 12 months for new listings on TMX?

Well, if I knew the answer to that, I would trade. But what I can tell you is there is a global resurgence that is starting to show size. We're starting to see some positive signs in the U.S., and I think Canada is a fast follower traditionally when it comes to kind of the IPO pipeline. So yes, it's seeing signs of resurgence. Beyond IPOs, it's been very robust. ETFs and related other noncorporate issuers have really been robust. I mean we're on track to beat our previous record of ETF listings from last year. So I think that's good. You did touch on the pipeline, Ben, and it's robust and very diverse. Over 50% of the pipeline is companies that are outside of Canada and over 50% of them are [ innovation-centric ] businesses. So it's robust. I just think we have a lot of capital waiting to be deployed we need some founder shareholders and Board of Directors to feel comfortable moving into the public market.

All right. So moving into your trading business. You mentioned you don't trade, but you trade. You've seen very strong growth in Canadian derivatives on the Montreal Exchange, particularly in your shorter-term contracts -- sorry, your longer-term contracts, Walk us through some of the key drivers there. To what extent have TMX's initiatives to sort of build out liquidity across the curve impacted activity. Do you think you can replicate in like the 2- and 5-year contracts, what you've seen in the 10-year side?

It's a great question, Ben. I mean it's been a lot to unpack there. So let's kind of break it down, right? So Obviously, there has been market volume growth that has really helped in the derivative space. But it's also the innovations, right? And the new products that we brought to market. And so I would say the -- they've played almost a 1/4 of the momentum is kind of what I would call the new initiatives. But if you look at that long-term kind of average, it's around 11% CAGR over the last 10 years. And we've been -- we categorize the derivatives trading and clearing business as a strong grower, which for us, we define as high single to double digits. Obviously, on a look back, CAGR of roughly 11% over the 10 years. Look, the tenure, as you touched on, the CGB, that is a very mature product, and it's remained strong, roughly 11% year-to-date growth. But in the 2-year and the 5-year, we're actually seeing better performance than that, right? I think on the 2-year, it's roughly around 27% and roughly around 30% on the 5-year. So CGZ, which is the 2-year and the CGF, which is a 5-year are showing rapid adoption and I think that it will outpace quite frankly, what we've done in the tenure. Even though it's doing it early, I think it will sustain long term.

Great. In the U.S., your ATS launched earlier this year, trading volume looks off to a pretty solid start. Maybe for those who are unfamiliar, can you talk a little bit about this venue? What are you trying to achieve? How does the technology differentiated? We'll start there.

Yes. So let me jump to the technology first, and then we'll see if you have a follow-on. But we launched in January of this year, in the first four months, we literally compounded on ourselves every single month. So it's gone off to a really, really good start. It leverages in-house technology that we built in Canada, both from the Montreal Exchange and the Toronto Stock Exchange and Venture Exchange. And we had an opportunity to really take the best of both worlds and then actually in a greenfield environment for the U.S. ATS kind of reimagine how we would build it from scratch to meet the needs of the U.S. participants. And that was really an exciting project for us, Ben, because it gave an opportunity for some of our development team members to raise their hand and say, like, I really want to work on this because this is next-gen technology for matching engine, it's software. And so they did a really, really good job there, and it's gone really well. It's a meaningful opportunity for us even with the kind of modest kind of market share aspirations that we have. And right now, it's really performing well.

Great. The follow up, how do you think about [ porting ] this back to Canada where you have already very meaningful market share? And is there anything different about Canadian market infrastructure that would affect how that tech might port back to your home market?

So initially, and you might recall, I think we even chatted about this going back a year and a bit when we announced we're going to do this. One of the hypotheses we had was this is a great market to be in the U.S. market. We have a right to participate. We have the technology and skills to do it. And so therefore, we're going to go forth with the initiative. And if it works out, we will be able to take that technology and bring it back to Canada and really find a way to now upgrade the matching engine technology, both on the Montreal Exchange and the Toronto Stock Exchange. So that is actually now starting. Team members under the leadership of our new Chief Information Officer, Judy Dinn, Luke Fortin on the Montreal Exchange and then Loui Anastasopoulos on the Toronto Stock Exchange side. We're starting to really imagine how to do that. So I'm excited. It's -- it was the hypothesis, and it's really nice when the hypothesis plays out. And this is one of those where we're able to build something from scratch and now actually repatriated back to Canada.

Got it. Switching gears a little bit, but still under that trading umbrella. Your post-trade modernization project went live earlier this year. And there's now opportunities for SGC and CCMS, which soft launched some new products earlier in the year as well. What kind of capabilities and products are these, again, maybe for some investors who are a little less familiar? And how should we be thinking about the revenue opportunity in the back half of the year and into 2026 and beyond?

Okay. A lot to unpack there. So yes, let's first celebrate. This was a milestone project for us in our 170-year history as a company. To modernize the cash equities and fixed income clearing technology in Canada was no mean feat. And the fact that we're able to get it done with the help of really, really active participation from the industry participants is kudos to everyone involved. And absolutely, as you've said, right, like the fact that, that is now done, we have a stable technology platform in which we can build innovative new products that meet clients' needs. You touched on two of them, right. So SGC notes, obviously, was designed as an alternative to SEDAR. And the other one, which folks in the room might not be familiar with, the CCMS, which is the Canadian Collateral Management System. We did that with Clearstream and really is to help optimize triparty repo and collateral management. And that's been really important for our banking partners under the various evolutions of the Basel regime. Obviously, I'm expecting those to continue to generate more meaningful revenue as we move into 2026. And then gives us an opportunity to, quite frankly, innovate and meet additional needs that the buy and sell side are talking to our teams about. So the core was get the technology modernized so we can do what it's intended to do, which is to clear effectively in the Canadian ecosystem but then now let's leverage that to innovate and meet additional client needs.

Okay. Great. Moving on to your Global Insights business, starting with Trayport, you continue to see very strong growth there. First, maybe talk high level about the long-term growth drivers of that business? Like what's been going so well here?

Yes. So the Trayport business for those in the room that are not that familiar, right? I mean the drivers behind that growth are client renewals. It's a SaaS-deployed technology environment. So obviously, we have clients, some with one year, some with multiyear agreements. When they come up for renewal, there's an opportunity for them to move deeper into the product stack. So more share of wallet is one of the key drivers. But the other one, quite frankly, is the growth in the actual industry and space that we play. Folks often talk about is Europe getting saturated and kind of where are you. And we added 82 new client logos, and that's really important because that was in the last 1.5 years. And finally, the thing that I'd leave you with is the geographic expansion outside of Europe is important to us because that helps fuel additional growth drivers, and that's really been Japan and obviously, the U.S. And then obviously, asset class, as we've spoken about many times, Ben, is an area of growth for us. We added renewables to the platform a couple of years ago. And as we mentioned at our Investor Day a year ago, we would love to add oil to the platform. And so the teams are actively working on doing that.

So sticking with Trayport, you have a pretty meaningful amount of market share in Europe. How do you think about reaching a saturation point? It sounds like there's still a lot of opportunity from products from client renewals, but is there enough opportunity outside of Europe, in the U.S. and Japan sort of offset that risk. I think that's sort of the question we get a lot of since that growth has been fantastic, how or will it sustain?

Absolutely, Ben. I get that question a lot, too. And at the end of the day, the way I sized it up is we continue to see expansion in the European marketplace, as I said, 82 new clients in the last 1.5 years. So it shows you that Europe isn't yet fully saturated. But at the same time, we're focused on other markets, right? And you touched on it. So Japan, to give people an order of magnitude like Japan for us is almost the size of Germany and France combined in terms of an opportunity. And then obviously, if you look at what we could do in North America, I mean, it could almost be the same size as Europe, if not bigger. So they're meaningful but they're organic growth opportunities, right? I mean when we started owning and operating Trayport, we made GBP 0 out of the U.S. It's now topping around GBP 7 million per annum. And it's just compounding. So I expect it to get more momentum. We recently signed an important broker in the U.S. environment and so in the U.S. space. So stay tuned. I think that there is enough white space for us to continue to grow. And as we've said, it's a high-growth business, which is high single to double digits. It's pretty much always been double digits since we've owned it. So I think that will continue.

Great. Maybe one last question here. One of the kind of bear things we hear are impacting some of your peers, some of the other globally traded exchanges is the idea that AI poses a threat to the sort of data aggregation and distribution model. So how do you think about the defensibility of Trayport? How proprietary is the data you're collecting? How sticky are the customer relationships? Why in your view, does that concern not apply to TMX?

Yes. So it's a great question, Ben. So let's start with the data and the data ownership rights, right? So in the Trayport environment, the trading data that is from a broker and a trader, it's proprietary to them, right? It is data that is only visible to them. And so I think the place where AI is going to play a meaningful part in the Trayport ecosystem is really twofold. One, it is what are the traders and brokers going to do to adopt Gen AI tools in their trading strategies, right? And how can we best support that in the Trayport software solution. The second place that I think it will play a meaningful part for us is our speed to deploy software upgrades and software innovations. Because traditionally, we've really had to use brute force testing technologies, which most people do, they'll come up with 100 or 150 test scripts for trading or for testing. And then you'll run the new code through that environment with the adoption of Gen AI, I think we'll be able to test an infinite amount of test cases on new code script, which means we'll bring code to market with less bugs and also will bring more code enhancements to market at a quicker pace. So that's how I see it playing in the Trayport ecosystem.

Okay. Moving on to VettaFi. ETFs are one of the fastest-growing subsectors of the asset management industry. Again, maybe starting with a high-level question, can you walk through the business model for VettaFi and the rationale behind your acquisition?

Yes. So the rationale was really in response to an emerging client need. We would speak to a lot of folks on the asset management side who would be very keen on creating either thematic or bespoke indices, and then launching ETFs on the back of those. And really, we've had a long-standing partnership now over 25 years with S&P, which is really for our kind of marquee benchmark indices. But really, when we get into the custom bespoke thematic, we needed to be in that space. VettaFi. What attracted us to VettaFi more so than anything else we'd looked at is how VettaFi is really at its core, it's the client success translates into their success. So everything is based on assets under management growing in the client's portfolio. And to help ensure that their product can grow, we have our digital distribution and analytics services that we add on as well. And so that, for me, was the unique value proposition with VettaFi and it's really borne fruit looking at how the VettaFi team can take a fledgling idea to market for an asset manager and then through its network with either etftrends.com or etfdb.com and the thousands of registered investment advisers in the U.S., we can reach out to them, create a podcast, profile that asset manager and, therefore, bring the eyeballs to actually be investing in that product. And it's really impressive to see that, that once again, the hypothesis does play out in reality.

And can you maybe expand on that a little bit. Can you walk us a bit -- walk us through how you think about the VettaFi growth algorithm. How should we think about AUM growth versus revenue growth? Clearly, some indices have very high value, some are maybe less proprietary or less differentiated. What are the key dynamics here as we think about those two kind of factors?

Yes. So you touched on it, Ben. I mean we -- and let me stand back on our publicly disclosed kind of guidance for that business, right, which is we define that business as a high-growth business, which is high singles to double digits. Ever since we've acquired it, it's been growing on a pro forma basis in mid-teens, so double digits, really good 15-plus percent. So once again, the hypothesis there is playing out. And really, the growth algorithm goes back to what I touched on earlier, right? It's obviously linking our revenue to the growth in assets under management is key. Not all of our asset classes have the same assets under management trade or fee structure. It's very unique and accustomed to each asset class that comes on to the platform then it's how do we actually help them curate. And really, at the end of the day, the asset manager's job is to have their fund perform relative to whatever their stated benchmarking in iNDEX is. And there's not much we can do for them on that. But what we can do is, to the extent they are performing well is bring enough registered investment advisers to the product to kind of open up their [ aperture ] to say, that's a good investable product to prove their clients' money into. And then last but not least is really using some of the data that we have on search history and ETF trends and etfdb.com to feed that back to asset managers to say, maybe you might want to innovate in this space because we've seen a lot of searches for -- and with the advent of AI, people are talking about nuclear as an example, right? So are there -- is there a nuclear index that I could invest in and then we can bring it to an asset manager and co-create that with it.

It's a good segue to my next question. I'm curious, in terms of new index creation, what types of themes are generating the most interest AI and power generation makes a lot of sense. What else is sort of pretty topical...

Global Defense is another area, fixed income. So yes, I would say the tip of the spear is AI. And then from there, certain things trickle out like power, so nuclear and so on and so forth. And then obviously, it's the global defense as I touched on, fixed income and so forth. Those are the ones that are getting the most buzz.

So VettaFi itself has been quite acquisitive. I think you recently acquired ETF stream adding some analytical capabilities. Can you maybe explain the kind of decision-making process there, buy versus build? And how else are you thinking about inorganic growth for VettaFi specifically?

Yes, it's a great question. So VettaFi, we have been quite acquisitive, but we're, at the same time, been investing heavily in some organic growth initiatives. So given your question is more on the inorganic, yes, it's been twofold. One is adding more indices and benchmarks to the portfolio and diversifying hence, the Credit Suisse, UBS bond index, which [ really ] gets us more in the fixed income kind of asset class. And then obviously, when we added iNDEX Research, where we really liked about iNDEX Researcher's portfolio is they had a really sizable piece in Europe, and that is next for -- up for us from a growth strategy for VettaFi but also they had a really compelling strategic narrative as to how they wanted to grow in Europe. And one of the pieces that iNDEX Research didn't have but VettaFi does have in the U.S. is the digital distribution and analytics capability. So that then created the opportunity when we started looking at ETF stream because while it's not a carbon copy of what we do in the U.S. for digital distribution and analytics, it has a lot of similarities. And so it's very complementary for the growth of indices and benchmarks and ETFs in the European landscape because they are a very trusted source for many ETF investors in Europe that if they were in the U.S., they would go to etftrends.com and etfdb.com. Now they will actually leverage the research and the articles and the depth of knowledge that comes out of ETF stream. So it's going to help us replicate VettaFi in Europe like we've done with VettaFi in the U.S.

Another good segue to my last question here on VettaFi. So I was going to ask about cross-sell opportunities you've been able to execute on between VettaFi and other parts of the business. I think the initial investor react to was Canadian trading venue, U.S. ETF manufacturer, index provider, doesn't at first seem particularly obvious. And so can you talk about what you've seen there? And maybe how that might unfold in Europe where ETF adoption is much lower than it is in the U.S., but you're obviously there with Trayport and some other parts of the business...

Correct. So that's a great question, Ben. So if I step back, so 1 of the things our CEO, John McKenzie did earlier this year is we put Peter Conroy, who's been operating effectively, the Trayport business for us for the better part of the last 7 to 8 years, right? And John tapped Peter on the shoulder to oversee all of our global insights business. In fact, Back in the day, you and I would have talked about the GSIA business, right, the Global Solutions, Insights and Analytics and even that is a mouthful and I even stumble trying to get it out. So now it's Global Insights. And Peter is in charge of all three of those businesses, which is VettaFi, Trayport and Datalinx. So one of the things that we're seeing is a much better synergy between the three teams on joint sales efforts, a much better sharing of CRM data amongst the three groups. And then most importantly is looking at where certain assets should reside. So a great example was TMX Money which is effectively a Canadian Yahoo! Finance, if you will. We like to think a better version. And that business, we've now placed under the management of the VettaFi team, right? Because once again, it's what they do with etftrains.com and ETF DB. So it's synergistic, and it's paying early dividends. So that's how we're tackling it, but I also think not to underplay the importance of having that common leadership across at all underneath Peter Conroy.

Very interesting. We talked about M&A within VettaFi. Maybe more broadly, your leverage ratio is now back within your target range. Is there any parts of the business you think could be strengthened through M&A where it makes sense to buy instead of build. And are you open to pursuing larger, more kind of needle-moving acquisitions?

Yes. So a nice little three part of the events. So let me start first with the deleveraging, right? That's an important part for us. And I hate to just gloss over it. I mean, just over a year and a bit ago on January 2, 2024, we announced the acquisition of VettaFi. Well, we actually announced that in early December of '23, but we closed the acquisition on January 2, 2024. At the time we took on some bank debt, which we shortly thereafter, we're able to repay because we refinanced with some long-term debenture issuance in the debt capital markets. And at the time, we were outside of our target leverage range, which to remind people in the room is 1.5 to 2.5x. And that range is simply there to guide us during periods of normal course kind of small tuck-in kind of M&A and just good balance sheet management. But when we have opportunities to do step function acquisitions, the first one really was Trayport, back in 2017, 2018. We went outside of that range in a meaningful way, very quickly delevered. We did the same with VettaFi. When we announced it, we went outside of our range. We did say we would get within the range by the end of 2025. As you know, when we ended Q2, we were right there, knocking on the door, and now we're well inside the range. So that's the story on the leverage, and it's really a testament to the firepower of our cash flow generating business. But quite frankly, the discipline of both the Board of Directors and the senior management team on managing the company really well. So that's the first part. And then we talked a little bit about M&A and some folks often ask me and you touched on the word strategy, right, like M&A strategy. And I'd like to always remind folks that we have a strategy for TMX, which is to grow the business. We set out our high-growth businesses, our strong growing business and our marketing growth businesses. But really, we want to grow revenue as a strong revenue growth, which is 5-plus and we're going to grow EPS double digits. And to do that, we can invest organically or we could partner with someone or we can invest inorganically. And so the choice really for us is does this help accelerate the strategy. And so we don't have an M&A strategy. We have a strategy that's for TMX. The M&A opportunities are really accelerants or things the way we say would probably better buying this than building it, right, or partnering with someone. So that's kind of the best way that I kind of frame it up. And then you asked at the end there, would you be willing to pursue larger acquisitions? And we said this when we announced VettaFi back in December of '23, that while we want to get within our target range, to the extent another business that helps accelerate the strategy, that would push us back outside of the range, we would entertain it. So had something occurred that was an accelerant for the strategy, Ben, 6 months, 12 months ago, we would have done it too. We just didn't have anything of that size of nature. And so yes, we are very interested in acquisitions of all sizes and quite frankly, most of the geographies in which we operate, which is really Canada, U.S., I think North America and then Europe and Asia Pacific as kind of the guidepost for now.

Switching gears a little bit. Let's talk about digital assets. So crypto has been a very popular topic for your U.S. counterparts given the shifting tone from our regulators here. I think you had previously considered listing spot crypto, but given the current market dynamics, is there an opportunity to revisit this? Or are there other opportunities, whether on a market infrastructure, are tokenized equities something you're thinking about? And if so, why? How are you thinking about kind of a wide range of opportunities?

It's a great question, Ben. So I think I'm going to start with a statement, which is really we need to see how it evolves with the new administration and the SEC in the U.S. first. I think Canada will be a fast follower and therefore, TMX will be a fast follower. But it really needs to -- first, we need to see how tokenization of securities plays out, right? I really see tokenization of assets that are non-securities as defined in the SEC rule book. is very, very relevant for so many folks in various different jurisdictions and marketplaces. We don't play in that space. We're a securities operator. So I'm very, very curious to see how it pans out in the U.S. And then I think that the OSC and others in Canada will be fast followers depending on where the U.S. ends up. I also think that there is a difference in nature of the investor in Canada versus in the U.S., a little bit more risk averse north of the border, a little bit of a more skeptical view. So we'll have to wait and see. And then you did touch on a couple of years ago, we did chat a little bit about something we were able to do in response to the banks asking about what's going on in crypto and so on and so forth. And we did work on a tentative solution, but it was actually driven by client demand, right? It was the 5 or 6 large Canadian banks approaching us and saying, we're getting questions from some of our wealth advisers that have maybe got clients that are a little bit more mature in their life cycle and either their children or family members are saying, you should get into crypto, Mom and Dad. And so they're talking to their financial advisers and the financial advisers are, therefore, bringing up the chain in the various banks to say, "We should find a way to meet this client need". And so we started working on a solution with both our trust business and our clearinghouse CDS that really would work for the banks. But then, unfortunately, a year and a bit ago, we had some of the missteps with FTX and others, and that kind of took the foot off the gas. So we're ready and willing to support the Canadian sell-side firms, whether it be in the investment solutioning side or in innovation, but it's really going to be driven by them, and there's a 2-step process here, which is really where does it go in the U.S., how does Canada follow? And then will our clients actually have a demand for it.

Maybe one more question on kind of new markets. I don't think we've -- you guys have talked about, but sort of plays into the retail crypto theme in the U.S. We've seen tremendous growth in prediction markets. Is there -- you mentioned the Canadian investors generally are more risk averse. It wouldn't surprise me if adoption of those kinds of trading tools is lower in Canada than it elsewhere. But how do you think about that as a future business line? Is there appetite? Is there a role for TMX to play or perhaps better left to the fintechs that are kind of driving that kind of trend?

So I think the short answer is it depends. And really what it depends on is, is there enough client demand in the Canadian retail space that needs to be met, right? And if so, we're well positioned to meet it. If the opportunity is meaningful. So that's why I say it depends, right? I'm -- we are not going to be the leading innovator in that space in the Canadian marketplace. But I will leave with -- we will be a fast follower if -- and it's a big if, the rule book works and the Canadian investor public is demanding and calling for it because then we have the right to play. We have the skills to play and then there's the demand, which is critical.

Maybe following up kind of retail in general. That has been a very strong theme in the U.S. stocks, options, crypto. It's been more modest in Canada, as we've been talking about. What are you seeing there? Is retail engagement? Are you seeing any sort of changes in terms of engagement with the Montreal Exchange, anything like that? Are there kind of retail opportunities for TMX. There are certainly some unique aspects to the markets with the venture exchange that kind of open up some unique opportunities. But how are you thinking about how that theme may play out in Canada?

So it's a little bit of what I did touch on earlier, Ben, like I think the Canadian retail investor is somewhat more conservative and, therefore, risk averse. So we saw some of the phenomenon in the U.S. with some of the stocks where retail investors would buy options because they couldn't afford to take a meaningful position. So they would buy retail options in those stocks. We didn't really see that in Canada. It's starting to emerge, but I think it's a more sophisticated investor, with a smaller base and a much more targeted set of cash equities where they would look at those options. So it's another one of those. Let's wait and see how it plays out. Once again, if the demand is there, Ben, we have the skills and the capabilities to meet the demand. It's just listing product on the Montreal Exchange that doesn't trade that is highly liquid, it doesn't help, right? It doesn't help the person who's bought it and now wants to sell and so on and so forth. And we are always willing to create markets through market-making programs and other incentives if there is enough demand for that market to be created. So it's almost like a bit of a chicken and the egg situation is we need to see the demand, and then we will very, very quickly respond versus let's create the product and hope the demand just follows.

I think coming back to Datalinx. We talked about Trayport and VettaFi, we hadn't touched on that one. Can you first maybe talk about the latest trends you're seeing there? And I think your revenue growth picked up kind of nicely in Q2 even as your market data subscribers metric kind of declined. What's driving the growth in that line?

So I think it's a couple of things. One is co-location is obviously helping in Datalinx, there is more demand for co-location services. But the other thing, quite frankly, is the fact that we're touching on some of the cross-sell opportunities there's more introduction given the fact that VettaFi is now part of the TMX family and therefore, opportunities for us to be connected with certain asset managers who would rather buy data sources directly from Datalinx. So that's underlying a little bit of the driver. It's also the fact that we have over 50% of the revenue in that business is coming from U.S. dollar-denominated contracts. So there is a foreign exchange benefit that we get there too, Ben. That's kind of the high level as to what's going on in Datalinx.

Got it. And maybe lastly, just following up Datalinx. How are you thinking about additional revenue or product opportunities should the longer-term growth sort of follow broader Canadian markets, maybe with some pricing power? Are there other ways to drive growth, new product creation?

Yes. That's a great question. So one of the things that I think is a huge opportunity for our Datalinx business is thinking about those additional data sets that would be complementary with the trading data that we really have as the kind of core bread and butter in that business. And so we acquired a company called Wall Street Horizon a couple of years ago. And that was important because they are known for their ability for high-quality corporate action data. And so now what the team are really focused on is what are these other data sets that are out in the marketplace that aren't trading data but are complementary to trading data and how can we actually marry that up with our data. So in our Capital Formation business, we recently acquired a company called Newsfile that does news dissemination services. So part of the things that the teams are working on is, okay, Obviously, in the Newsfile business, it's important to get out on time, in a quality way, the press releases for those issuers, some of which are actually private, right? And then how can we actually not only do that but create the data model behind that to create structured data on those corporates that are issued, the that are publicly traded, marry up that data with other data sets. So one of the things we're thinking about is a lot of individuals spend a lot of time going and getting AIF data, various different executive compensation data points. And I would say in the generalized kind of marketplace because I use this a lot with my team as we're doing some analysis on the finance team, the data is average, right? I've got to double check sources. Every once in a while, they show me a chart, and I say that doesn't make sense. And sometimes I'm wrong, but oftentimes, it's the data was actually wrong, right? And the team come back and say, "Yes, we've checked it in the annual report. So we shouldn't have pulled it from that data source". And so I think there's an opportunity for the Datalinx team, and that's part of their strategic road map right now is they're looking at these other data sets out there and the challenge that we have as we look at these other data sets is we need to be able to do it at the quality that has got the TMX label attached to it. If we bring in other data sets, Ben, that are just as poor as quality as others, it will actually hurt the value proposition of the Datalinx data set. So we spend a lot of time with our Newsfile team, spending a lot of time with our Wall Street Horizon team, making sure that we have quality, marrying that with the TMX Datalinx data. And then as I said, looking at these other pockets. And I won't give you what those pockets are because some of them are active files as we're talking to people about whether or not they would like to join the TMX data set family.

Great. we're nearly out of time. We'll leave it there. But David, what a pleasure to have you as always. Thank you so much.

Yes. Great. Thanks, Ben. Awesome. Thank you.