2. THE TORONTO STOCK EXCHANGE A summary

3. TSE trivia Incorporated in 1878 Largest computer-only exchange in North America Monthly trading: over $100 billion Lower costs of going public than NYSE and NASDAQ

4. Listing Requirements: Profitable Companies Net tangible assets of $2,000,000 Net earnings from on-going operations of at least $200,000 Pre-tax cash flow of $500,000 Sufficient working capital and appropriate capital structure Companies forecasting profitability Net tangible assets of $7,500,000 Sufficient support of the company’s forecast of the earnings Evidence of pre-tax cash flow for the current or next year of at least $500,000 Adequate working capital and appropriate capital structure to carry on the business Public Distribution Requirements At least 100,000 freely traded shares having a market value of $4,000,000 Other requirements

5. Demutualization Before: Members owned the TSE Now: TSE inc. is a public company owned by shareholders (former members) and governed by a board of directors

6. CATS The world’s first Computer Assisted Trading System Requirements: Users must be approved traders All trades are executed through terminals located on the floor or in a traders office Orders are received by registered representatives and then transmitted to the trader

7. Orders: CATS Limit order Enter a queue according to price and time specifications If there is a match between a buy order price and a sell order price, the the order is filled Hit-the-market order CATS automatically assigns a price equal to the opposite side of the market

8. TOREX Updated version of CATS

9. Benefits of Fully Electronic Trading Access to a wide range of markets View news and corporate development See the size and depth of the market Access to all Canadian Exchanges Greater efficiency