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CNQ Implements Market Structure Changes

Innovation to increase Trader access and enhance liquidity

Toronto, Ont. (May 8, 2007) – Canadian Trading and Quotation System Inc. (“CNQ”), the operator of Canada’s New Stock Exchange, has enacted changes to its trading rules that will create new opportunities for all dealers to participate in trading. Rule changes to open up access to its market to all dealers have been made in response to requests from several stakeholders, including listed companies and investors.

The rule changes were recently approved by the OSC, and are widely supported within the community of investment dealers participating in CNQ. Specifically, the new rules allow any participating CNQ dealer to enter orders without involving a market maker, with the sole exception of jitney orders. This initiative is designed to facilitate the development of order entry via dealers’ internet facilities and processing through order management systems. Market making firms favor the change as it will improve overall access to the market and encourage direct electronic access by more participants which is a benefit to investors and dealers alike. At the same time, trading fee discounts have been provided to market makers to compensate them for providing liquidity.

“It is important to align the interests of all participants wherever possible and we believe that these changes accomplish this for the CNQ stock exchange” said Robert Cook, CNQ President. “When you have equal support from investors, dealers and listed companies there is an obvious benefit to the market as a whole.”

The obligations of a CNQ Dealer approved as a Market Maker remain the same - they must maintain a continuous two-sided quotation reasonably related to the prevailing market, for a minimum of three months. Also, at least 30 days advance notice is required of an intention to relinquish Market Maker Obligations. A Designated Market Maker accepting a client order from another CNQ dealer must provide best execution for that client order, and is entitled to a reasonable commission or transaction fee.

CNQ was recognized as a stock exchange by the Ontario Securities Commission in May, 2004 as the first new Canadian stock exchange in over 70 years. It is also the operator of Pure Trading, a high speed, low cost alternative market to trade securities listed on other Canadian stock exchanges, which is preparing to launch a continuous auction market in the second quarter of 2007. There are currently 58 investment dealers approved for direct access to both Pure Trading and the CNQ stock exchange. For more information, please visit the website at


For more information please contact:
Lida Preyma
Director, Business Development & Marketing
416.572.2000 ex 2285



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