OVERVIEW OF THE BUSINESS (continued)

Listings – Toronto Stock Exchange and TSX Venture Exchange 
Our listings operations take place through either Toronto Stock Exchange, our senior market or TSX Venture Exchange, our junior market. TSX Venture Exchange also offers a board for issuers that have fallen below TSX Venture Exchange’s ongoing listing standards, referred to as NEX¹.

• At December 31, 2005, 1,537 issuers with an aggregate market capitalization of $1.8 trillion were listed on Toronto Stock Exchange.
• At December 31, 2005, 2,221 issuers with an aggregate market capitalization of $34.0 billion were listed on TSX Venture Exchange.
• In 2005, revenue from listing fees on the two exchanges represented $87.7 million, or 30% of our revenue. Revenue from listing fees was $72.9 million on Toronto Stock Exchange and $14.8 million on TSX Venture Exchange. Listing fees received* from our issuers in 2005 was $146.3 million.
• In 2004, revenue from listing fees on the two exchanges represented $75.0 million, or 31% of our revenue. Revenue from listing fees was $63.4 million on Toronto Stock Exchange and $11.6 million on TSX Venture Exchange. Listing fees received* from our issuers in 2004 was $127.2 million. 

In general, issuers initially list on Toronto Stock Exchange either in connection with their initial public offerings (“IPOs”), or by graduating from TSX Venture Exchange.  Junior companies generally list on TSX Venture Exchange either in connection with their IPOs or through alternative methods such as TSX Venture Exchange’s Capital Pool Company® (CPC™) program or reverse takeovers. 

Issuers list a number of different types of securities including conventional securities such as common shares, preferred shares, rights and warrants, and an expanding variety of alternative types of securities such as exchangeable shares, convertible debt instruments, limited partnership units, exchange-traded fund units, income trust units and structured products. 

Issuers that meet initial and ongoing listing requirements of Toronto Stock Exchange or TSX Venture Exchange receive a range of benefits, including opportunities to efficiently access public capital, liquidity for existing investors, mentorship programs and the prestige and market exposure associated with being listed on one of Canada’s national stock exchanges. 

We generate listing revenue by charging issuers the following types of listing fees:

Initial Listing Fees 
Toronto Stock Exchange and TSX Venture Exchange issuers pay initial fees based on the value of the securities to be listed or reserved, subject to minimum and maximum fees. For accounting purposes, we recognize revenue from initial listing fees on a straight line basis over a ten year period. Unamortized balances are recorded as deferred revenue-initial and additional listing fees on the consolidated balance sheet (see Deferred Revenue – Initial and Additional Listing Fees).

Additional Listing Fees 
Issuers listed on one of our equity exchanges pay fees in connection with capital market transactions, such as the raising of new capital through the sale of additional securities. Additional listing fees are based on the value of the securities to be listed or reserved, subject to minimum and maximum fees. For accounting purposes, we recognize additional listing fees on a straight line basis over a ten year period.  Unamortized balances are recorded as deferred revenue-initial and additional listing fees on the consolidated balance sheet (see Deferred Revenue – Initial and Additional Listing Fees).  

Sustaining Listing Fees 
Issuers listed on one of our equity exchanges pay annual fees to maintain their listing, based on their market capitalization at the end of the prior calendar year, subject to minimum and maximum fees. Sustaining listing fees provide a relatively stable, recurring revenue stream.  Sustaining listing fees are billed during the first quarter of the year, recorded as deferred revenue and amortized over the year on a straight-line basis.

Changes to Listing Fees for 2006
In December, 2005, we announced changes to the 2006 fee structure for issuers listed on Toronto Stock Exchange and TSX Venture Exchange. This followed a review of listing fees on other major global exchanges. There will be both increases and decreases to fees paid by listed issuers. It is anticipated that, in aggregate, listing fees received* will increase by about five to seven percent on an annual basis as a result of these changes². 

^{* See discussion under the heading Non-GAAP Financial Measures.
1 Unless otherwise indicated, market statistics and financial information includes information for NEX.
2 The "Changes to Listing Fees for 2006" section above contains certain forward-looking statements. Please refer to "Forward-Looking Statements,
Risks and Uncertainties" for a discussion of risks and uncertainties related to such statements.}