Strategy

Our current and continued success lies in anticipating and meeting the needs of our customers.

Focus Opportunity Action
     
     
Grow energy trading The accelerating demand for energy, the growing strength of the energy sector, and Canada’s position as a global energy powerhouse all combine to present significant opportunities for TSX Group and for NGX. And we have taken steps to fully capitalize on these opportunities. In March 2007, we announced an arrangement to combine NGX’s strengths in physical clearing with the unique technology capabilities of IntercontinentalExchange. In 2007, we also purchased an option to acquire NetThruPut Inc., a leading Canadian electronic platform for trading and clearing crude oil. Recently, we moved to strengthen our position in energy even further by increasing the NGX clearing backstop fund to $100 million US from $30 million Canadian.
     
Expand listings With a variety of options for listing and a clear and supported infrastructure for growth, TSX Group’s exchanges are unique among global equity markets. TSX Group’s equity exchanges serve companies from all over the world at all stages of their growth. We are seeing the benefits of promoting Canada as a listing destination and entrenching TSX and TSXV’s position as preeminent global resource and small to medium enterprise exchanges. Our sales efforts are focused on generating new listings from China, Australia, Brazil, Israel, South Africa and the United States. In 2007, we added a record 49 new international listings, including graduates.
     
Lead in technology We are witnessing a race to put in place the fastest, cheapest and highest capacity trading technologies to meet the demands of a sector that is globalizing rapidly and is in constant motion. We intend to continue to be a world leader in trading technology. TSX Quantum is TSX Group’s new unique proprietary trading technology. It began its phased launch on schedule in December 2007, and as we continue to complete implementation, we move closer to realizing our goal of significantly enhancing our market’s performance and capacity. We are already fast, but TSX Quantum will provide our customers with even greater speed and more capacity, and we believe it will enable us to attract higher volumes and liquidity.
     
Expand into derivatives trading We see tremendous opportunity in the North American derivatives market. The 2007 Bank of International Settlement study shows that activity in the global derivatives market has increased 71% since it was last measured in 2004. New product opportunities are also vast. Announcing our combination with Montreal Exchange in December 2007 marked an important milestone in our history. This strategic deal is central to our vision of creating an exchange group that will not only continue to serve the needs of Canadian investors, entrepreneurs and companies, but will strengthen our impact on an increasingly borderless economy. We also believe it will provide great benefits for our shareholders and the Canadian capital markets.