The US equities and options trading scene is set to shift as Canada’s TMX Group moves aggressively into the market. By merging MEMX and BOX Options Market into a new entity named MEMX Group, valued at $2.3 billion, TMX gains majority control, owning about 59% after investing $800 million in cash plus its existing BOX stake.
What the merger means operationally
MEMX Group will oversee one equities exchange, three US options venues, and a market technology unit. Jonathan Kellner, MEMX’s current CEO, is appointed to lead the combined company. The merged business projects nearly $280 million in revenue with an EBITDA margin close to 48%, forecasting it will handle around 10% of US options market volume. The deal is expected to close by late 2027, pending regulatory approval.
Market impact and strategic context
This move challenges the current US exchange ecosystem dominated by giants like Intercontinental Exchange (NYSE), Cboe Global Markets, and Nasdaq, all owning multiple venues. MEMX’s founding goal focused on increasing competition and transparency in US equities since 2019, while BOX has operated in options trading since 2008, largely under TMX ownership. Key market participants such as Jane Street, Morgan Stanley, and Citadel Securities support the deal by rolling in equity stakes.
With an enterprise value about eight times the merged entity’s revenue, TMX’s investment signals confidence in growing a significant US trading competitor. The merger also reflects ongoing consolidation trends within exchanges, echoing moves seen across financial markets including the crypto sector’s infrastructure evolution.
This content is informational and not a financial recommendation.
