Review of Operations – 2005
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REVIEW OF OPERATIONS – 2005 (continued)

Information and Trading Systems 

(in millions of dollars) 

2005

2004

% Increase 

$ 17.4

$ 15.8

10%
  • Information and Trading Systems costs increased due to higher hardware lease costs relating in part to expansion of trading system capacity required to maintain availability to accommodate the substantial growth in the number of orders and transactions.

General and Administrative 

(in millions of dollars) 

2005

2004

% (Decrease)
$ 35.8

$ 42.1

(15%)
  • General and Administrative costs decreased due to reduced spending related to marketing activities.
  • During 2004, we settled arbitration proceedings with a supplier for $3.6 million.
  • The decrease was somewhat offset by the inclusion of NGX expenses for the full year in 2005 compared with ten months in 2004.
  • We paid Market Regulation Services Inc. $3.5 million for regulation services in 2005 ($3.1 million in 2004). The increase was as a result of services related to higher listing activity.

Amortization 

(in millions of dollars) 

2005

2004

% Increase 
$ 13.5

$ 13.0

4%
  • Amortization increased primarily due to the write-off of leasehold improvements related to the sublease of the TSX Conference Centre.

Loss from Investment in Affiliate 

(in millions of dollars) 

2005

2004

% (Decrease)
$ 0.7

$ 1.2

(42%)
  • Loss from Investment in Affiliate represents our share of CanDeal’s loss for 2005 based on a 45% interest in CanDeal at December 31, 2005.
  • The loss decreased due to a combination of CanDeal’s increased revenue and a reduction in its operating costs, somewhat offset by the write-off of software related to CanDeal’s transition to the Thomson TradeWeb® technology platform.

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