TSX Group and International Securities Exchange Announce DEX(TM) - A New Canadian Derivatives Exchange
March 05 2007 - 7:49AM
Business Wire
TSX Group CEO Richard Nesbitt and International Securities Exchange
(ISE) President and CEO David Krell today announced the creation of
DEX, a new derivatives exchange to be launched by two of the
world�s leading marketplaces. DEX, which is scheduled to begin
operations in March 2009, will be owned 52% by TSX Group and 48% by
ISE and will list and trade options, futures and options on futures
on a range of Canadian securities. DEX will pair TSX�s pre-eminent
position as the leading Canadian market for Canadian securities
together with ISE�s superior derivatives trading platform,
including OMX�s trade match engine and ISE�s complementary suite of
technology. With a distinct order book and trading rules, DEX will
complement TSX Group�s exchanges to provide investors with a full
suite of trading products and strategies. �We are excited to
announce this new exchange with ISE, a company that has shown great
innovation and growth in the very competitive US derivatives
market,� said Richard Nesbitt, TSX Group�s CEO. �Our commitment to
customers is to provide innovative products and services and the
best trading solutions. With the launch of DEX, we will be offering
both cash and derivatives trading, and providing maximum
flexibility, to our customers.� ISE President and CEO David Krell
said, �We believe this unique opportunity will bring additional
value to our members and shareholders as well. We have seen
tremendous growth in ISE�s derivatives offering across the US, and
we see this alliance as a first step in expanding our international
footprint. Working with a leading exchange group like TSX Group is
clearly a natural fit.� Between now and the launch in 2009,
professionals from both TSX Group and ISE will work on the
implementation strategy. Robert Fotheringham, TSX Group�s
Vice-President of Trading, and Thomas Ascher, ISE�s Chief Strategy
Officer, are leading the initiative. Mr. Nesbitt added, �We have a
busy agenda and exciting opportunities ahead of us with the end
result being a world-class derivatives exchange for Canada. This is
truly an exciting time for our markets and we look forward to the
launch of DEX in 2009.� �We are pleased to be executing on one of
our key strategic initiatives to deliver ISE�s derivatives
expertise and trading capabilities to the international
marketplace. This venture with TSX Group will create a new platform
to expand the trading alternatives available for investors in
Canadian securities and will clearly benefit the Canadian market,�
said Mr. Krell. The anticipated cost of setting up this new
exchange between now and the launch in March 2009 is approximately
$26 million (Canadian). The costs will be split between TSX Group
and ISE according to the share ownership of the new initiative.
This binding arrangement between TSX Group and ISE is subject to
certain usual and customary conditions, including applicable
regulatory filings and approvals, and is subject to termination in
certain circumstances. Certain statements constitute
forward-looking statements and are not historical facts but are
based on certain assumptions and reflect TSX Group�s current
expectations regarding future results or events. These statements
are subject to a number of risks and uncertainties that could cause
actual results or events to differ materially. Some of the risk
factors that could cause actual results or events to differ
materially from current expectations are outlined in TSX Group�s
Annual Report, Quarterly Reports and Annual Information Form filed
with securities regulators from time to time. Certain matters
discussed in this press release are �forward looking statements�
intended to qualify for the safe harbor from liability established
by the Private Securities Litigation Reform Act of 1995. These
statements relate to future events or ISE�s future financial
performance, and involve known and unknown risks, uncertainties and
other factors that may cause ISE�s actual results, levels of
activity, performance or achievements, to be materially different
from those contemplated by the forward looking statements. ISE
undertakes no ongoing obligation, other than that imposed by law,
to update these statements. Factors that could affect ISE�s
results, levels of activity, performance or achievements and cause
them to materially differ from those contained in the forward
looking statements can be found in ISE�s filings with the
Securities and Exchange Commission, including ISE�s annual report
on Form 10-K, current reports on Form 8-K and quarterly reports on
Form 10-Q, as amended. Events Scheduled for March 5 (Eastern
Standard Time) 8:30 a.m. Joint TSX/ISE Analyst Call TSX Group Inc.
and ISE will hold an Analyst Call at 8:30 a.m. this morning to
discuss today�s announcement. Phone numbers for the live call are:
416-644-3430 and 1-800-590-1817 Richard Nesbitt, Chief Executive
Officer, TSX Group and David Krell, International Securities
Exchange President and CEO, along with the CFOs of both
corporations, will participate on the call. An audio replay of the
conference call will be available at 416-640-1917 and
1-877-289-8525, passcode 21221534#. The audio web cast of the
conference call will also be available on TSX Group�s website at
www.tsx.com, under Investor Relations and on the International
Securities Exchange website at http://www.iseoptions.com/ under the
Investor Relations section. 10:00 a.m. TSX/ISE Joint News
Conference TSX Group CEO Richard Nesbitt and International
Securities Exchange President and CEO David Krell will hold a news
conference at 10:00 a.m. March 5 in the TSX Gallery. A live feed of
the news conference will be available in TSX Group�s Montreal
office. For an audio feed of the news conference, dial in at
416-644-3432 or 1-800-590-1508. An audio replay of the news
conference will be available by calling 416-640-1917 or
1-877-289-8525, passcode 21221563#. Toronto: TSX Broadcast Centre,
Main Floor, 130 King Street West, Toronto (King and York Streets)
Montreal: TSX Group Montreal Office, Suite 1100, 1000 Sherbrooke
Street West Montreal, QC Television Editors -- Media may pick up a
feed from the TOC (television operations centre) for the news
conference. The feed is named TSX Transmit 2 and is produced at the
TSX and sent live to the TOC. About TSX Group Inc. (TSX-X) TSX
Group operates Canada's two national stock exchanges, Toronto Stock
Exchange serving the senior equity market and TSX Venture Exchange
serving the public venture equity market, Natural Gas Exchange
(NGX), a leading North American exchange for the trading and
clearing of natural gas and electricity contracts and Shorcan
Brokers Limited, the country's first fixed income inter-dealer
broker. TSX are the initials attached to the core equity operations
of TSX Group (www.tsx.com): Toronto Stock Exchange, TSX Venture
Exchange, TSX Markets, TSX Datalinx, and TSX Technologies. TSX
Group is headquartered in Toronto and maintains offices in
Montreal, Winnipeg, Calgary and Vancouver. About ISE International
Securities Exchange Holdings, Inc. (NYSE: ISE), through its
subsidiaries, operates a family of innovative securities markets.
ISE is founded on the principle that technology and competition
create better, more efficient markets for investors and consists of
an options exchange, a stock exchange and an alternative markets
platform. ISE continually enhances its trading systems and develops
new products to provide investors with the best marketplace and
investment tools to trade smarter. ISE developed a unique market
structure for advanced screen-based trading systems and in May 2000
launched the first fully-electronic US options exchange. Currently,
ISE operates the largest U.S. equity options exchange and is among
the leading options exchanges in the world. ISE offers index
options, including a portfolio of proprietary index products, and
enhanced market data products for sophisticated investors. ISE FX
Options� are slated to launch in 2007. ISE Stock Exchange, launched
in September 2006 with strategic partners, includes an innovative
MidPoint Match� platform which offers investors continuous price
improvement. MidPoint Match was integrated with a fully-displayed
Best Bid Offer market in the fourth quarter of 2006. ISE�s
alternative markets business currently consists of an events market
trading platform known as Longitude. Longitude�s patented and
proprietary technology provides a unique parimutuel structure for
derivatives auctions which results in greater trading and pricing
flexibility for market participants. For more information about ISE
and its options exchange, visit www.iseoptions.com and for more
information about ISE Stock Exchange, visit www.isestock.com.
Additionally, to learn more about ISE alternative markets
technology, visit www.longitude.com.
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