The operator of the Toronto Stock Exchange has taken a minority stake in the Bermuda Stock Exchange, in a move to broaden its scope.

TMX Group, which operates the Toronto Stock Exchange as well as the Montreal Exchange, announced that it has taken a 16% minority stake, making it one of the largest shareholders of the offshore exchange.

“With the investment from the TMX, it will give them the ability to develop its international exchange business, but it will also help the BSX in terms of getting access to TMX resources,” Greg Wojciechowski, president and chief executive officer of the BSX, told Markets Media. This provides ways to develop the Bermudian market and benefit the TMX as well.”

“TMX Group has made a small investment in BSX, but it provides interesting geographical and product development opportunities,” a TMX spokesperson told Markets Media. “We will be assessing the full potential as we move forward.”

TMX CEO Tom Kloet will also be joining the board of directors at the BSX.

The announcement comes at a time of increased business activity between Bermuda and Canada, as many Canadian financial institutions and insurance companies are very active in the Caribbean. The BSX received designated exchange status under Canada’s Income Tax Act. This means securities listed on a designated exchange, such as the BSX, qualify to be held in a registered retirement savings plan, which is an important retirement savings vehicle for Canadians. A Tax Information Exchange Agreement was also signed between the two countries earlier this year.

The move by TMX to take a minority stake in the Bermuda bourse is the latest effort by the Canadian exchange operator to venture outside its core business and expand its revenue streams.

Earlier in the month, TMX announced that they had come to an agreement to acquire Sydney, Australia’s Razor Risk Technologies, which provides credit risk software to clearing houses, stock exchanges, financial institutions and brokerages.