OVERVIEW OF THE BUSINESS 

We own and operate two national stock exchanges, Toronto Stock Exchange and TSX Venture Exchange, which are the primary venues for capital formation and liquidity in Canada. The total market capitalization of the 3,758 issuers listed on our equity exchanges at December 31, 2005 was almost $1.9 trillion, making our combined equity exchanges the third largest in North America and the seventh largest in the world. The total value of securities traded on our two equity exchanges in 2005 was approximately $1.1 trillion. 

We also own Natural Gas Exchange (NGX) which operates a North American exchange for the trading and clearing of natural gas and electricity contracts. During 2005, 8.8 million terajoules in natural gas and electricity contracts were traded and/or cleared on NGX.

We also own 45% of CanDeal.ca.Inc. (CanDeal), an institutional fixed income trading system. During 2005, CanDeal traded $147.9 billion in fixed income securities.

Core Business of TSX Group 
We derive revenue from three principal sources – listings, trading, and market data. 

2005 revenue of $ 290.0 million (% of total revenue)	2004 revenue of $ 243.4 million (% of total revenue)

In October, 2005, we changed the way we account for fees charged for initial listings and additional financing, and retroactively applied this treatment so that these fees are now amortized over a ten year period as described later in this MD&A. We believe that initial and additional listing fees received* is an important measure of our business as it reflects current activity and the actual cash flow received from initial and additional listings. We therefore continue to provide information on initial and additional listing fees received*.

2005 revenue of $ 348.6 million* (% of total revenue based on initial and additional listing fees received*)	2004 revenue of $ 295.6 million* (% of total revenue based on initial  and additional listing fees received*)