Notes to the Consolidated Financial Statements
Years ended December 31, 2008 and 2007 (In thousands of dollars, except per share amounts)

8. Goodwill and intangible assets:

The Company performed its annual goodwill impairment analysis during the fourth quarter and determined that the fair values of its reporting units were not impaired. Therefore, the second step of the impairment test was not required.

At the time of the respective purchases, the Company recorded intangible assets related to the customer bases of TSX Venture Exchange Inc., NGX, Oxen, Shorcan, and Equicom and, in connection with the acquisition of PC Bond, the customer base and a long-term data licence under which Scotia Capital Inc. provides fixed income pricing data. As part of the Company’s acquisition of MX and BOX, the Company recorded additional intangible assets as disclosed in note 2.

During 2008, the Company capitalized $3,671 (2007 – $ 5,725) of software development costs incurred to build TSX Quantum, and $3,913 (2007 – $nil) incurred on SOLA development.

    2008     2007  
  Gross carrying amount Accumulated amortization Net book value Gross carrying amount Accumulated amortization Net book value
Indefinite life intangible assets                        
Derivative products $ 630,926 $ - $ 630,926 $       - $ - $ -
Trade names   28,214   -   28,214   -   -   -
Regulatory designation   2,000   -   2,000   -   -   -
    661,140   -   661,140   -   -   -
                         
Definite life intangible assets                        
Trading participants   151,436   3,260   148,176   -   -   -
Capitalized software and                        
software development   30,289   3,614   26,675   5,725   48   5,677
Customer base   69,890   19,076   50,814   69,890   15,126   54,764
Data and indices licenses   7,000   1,829   5,171   7,000   863   6,137
Open interests   1,429   1,429   -   -   -   -
    260,044   29,208   230,836   82,615   16,037   66,578
                         
  $ 921,184 $ 29,208 $ 891,976 $ 82,615 $ 16,037 $ 66,578

During 2008, the Company recognized amortization expense of $13,140 (2007 - $4,735).