UPDATE: TSX Group Names Thomas Kloet As CEO

(Adds commentary on appointment throughout. Updates TSX stock price.)

DOW JONES NEWSWIRES

TSX Group Inc. (Toronto:X) (X.T) has named Thomas A. Kloet as chief executive following an extensive international search.

The appointment is effective July 14.

The Toronto-based company said Kloet has spent the last five years as senior executive vice-president and chief operating officer at Fimat USA LLC and its successor company, Newedge USA LLC. Before that, he was chief executive of Singapore Exchange Ltd.

TSX Group said Kloet has extensive experience in equities, derivatives, clearing and electronic trading and "is the right person to drive the future of our new integrated TMX Group."

Kloet's appointment comes just after the stock-exchange operator combined with Montreal Exchange Inc., Canada's derivatives exchange. It's also facing pending competition from Alpha Trading Systems, which is backed by Canada's big banks and expects to launch an alternative trading system in September.

In addition to eliminating an unncessary distraction, the TSX stands to benefit from Kloet's experience integrating cash equities, derivatives and clearing during his role as head of the Singapore Exchange, noted BMO Capital Markets analyst John Reucassel.

However, Kloet doesn't have experience working in Canada "which is a pressing concern given the imminent launch of Alpha..." and he lacks experience overseeing a cash-equities business at a time when the incumbent operator is facing new competition, Reucassel wrote.

In Toronto Monday, TSX shares are down 36 Canadian cents to C$42.99.

BMO Capital is an Alpha shareholder and the firm has had an investment-banking relationship with TSX. The analyst doesn't own the stock.

Newspaper reports had said TSX Group was in talks with Bernard Dan, former president and chief executive of the derivatives-focused Chicago Board of Trade, for the chief executive post. Reports also said Luc Bertrand, former head of the Montreal Exchange, and Rik Parkhill, head of the markets division at TSX Group, were likely candidates.

According to a Globe and Mail report, Bertrand said he would stay with the merged company even if another person was chosen for the CEO role. However, it's still unclear if Parkhill plans to remain with TSX.

-Carolyn King; 416-306-2100; AskNewswires@dowjones.com

(Ben Dummett in Toronto contributed to this article.)

    (END) Dow Jones Newswires   06-09-08 1243   Copyright (c) 2008 Dow Jones & Company, Inc.