TSX Trading:

1. TSX Trading: Rik Parkhill, President, TSX Markets Presentation to CSTA Mt. Tremblant August 25, 2006

2. New Technology New Pricing New Products Competition TSX Markets is a leading innovator in the Canadian marketplace Introducing leading edge, innovative technology • TSXPress • Next Generation Trading Engine Constantly looking to reduce customer costs • Volume Based Pricing New products to meet evolving demands of participants • FIX * ATX • Trade Netting • Smart Order Routing TSX remains a strong global competitor • US Competition • Consolidation Trend

3. technology Changes in trading patterns continue to reshape marketplace requirements Projected Growth of Algorithmic Trading on TSX Performance is being challenged by increasing message to trade ratios 35% 30% 25% 20% 15% 10% 5% Traditional Trading Algorithmic Trading % Growth in Algo Trading Source: TSX analysis based on estimates

4. technology TSXPressTM is delivering on new market requirements of speed and throughput

5. technology Our ‘Next Generation Trading Engine’ will set a new North American benchmark for speed and reliability Market Challenges Requirements for New Technology Very high throughput range between 1,000 to 10,000 messages per second Very fast response times that range <10 milliseconds Availability: Range of 99.95% Flexible architecture that allows changes and enhancements to be made quickly and easily Moving toward lower-cost, non-proprietary platforms • Inbound messaging rates are increasing dramatically due to changes in trading patterns • The tolerance for latency is decreasing • High availability standards must continue to be met • Time to market for product enhancements must continue to be responsive to competitive business needs i.e. “first to market” • Decreasing trading fees

6. We have introduced a new fee structure to ensure our clients’ competitiveness Pricing Benefits to Customers • The new fee structure offers the most competitive rates in North America, for the highest tiers • Motivates increased liquidity in the CLOB, by rebating passive order flow • Trading fees are easier to calculate • Improves cost certainty for customers in volatile markets • Increases transparency of trading fees The new fee structure was introduced July 1, 2006

7. We are now offering access via FIX Protocol to accommodate new global customers and your expansion Products • FIX protocol is now available in parallel with the existing STAMPTM protocol • Currently a number of customers are piloting the new protocol and many others are in the process of testing and certification • A staged roll-out should be complete in second half of 2006 The specification is available upon request and customer demand for FIX has been very strong Benefits of Introducing FIX: • Gives new and existing customers additional connectivity options • Eliminates need for FIX translation programs which often add latency to order execution • Increases the number of potential vendors

8. ATX will improve order flow efficiency and limit market impact of upstairs trading* Products ATX (Alternative Trade eXecution) will match all types of internal order flow against in-house liquidity and liquidity from other participating organizations, in a completely blind book. ATX will be a low latency application which buy-side can access directly through DMAconnections *Subject to regulatory approval.

9. Trade netting will provide clients with significant savings on clearing and settlement costs* Products Proposed TSX Trade Netting System Current *Subject to regulatory approval.

10. And a TSX smart order router will link markets and provide trade-through compliance Products The TSX smart order router will enable clients to: • meet best execution obligations • comply with trade-through rules • connect to multiple Canadian markets using existing order entry systems … and will be a vendor and dealer neutral system TSX will eventually use this system to facilitate multi-asset class trades

11. Competition is increasing due to changes in US markets Competition Structural changes in US are resulting in significant systems upgrades of TSX’s primary competitors • Strict trade-through protection creating continued trends toward automation in the USA • Has also created regulatory spin-off effects in Canada Regulation NMS NYSE Hybrid Model • Will increase the velocity of trading in Canadian-Based Interlisted names dramatically • Creates very efficient platform competing well with NYSE • A new venue of competition for NYSE interlisted names Integration of NASDAQ Marketplaces

12. But the global consolidation trend will not impede our ability to compete Competition Current exchange consolidation is a response to competitive pressures, not a driver of competition NYSE + ARCA/EX + Euronext • Undifferentiated business model dependent on mega-cap listings/ trading • All-electronic auction markets (eventually!) • that are more similar than different • Focus on trading large cap securities NASDAQ + INET + LSE? • TSX offers a diverse set of facilities that accommodate different trading styles • TSX will continue to thrive in: • Resources • Small & Mid Cap Financings • Innovative Equity Products TSX Group

13. The TSX trading environment will offer all customers one-stop shopping with a product suite for all trading styles* *Some components that are still in development may be subject to regulatory approval.