Toronto Stock Exchange and TSX Venture Exchange Exchange Alpha

1. Toronto Stock Exchange and TSX Venture ExchangeExchange Alpha r α β

2. TSX strategy addresses all stakeholders in the investment process BUY SIDE SELL SIDE INVESTMENT PROCESS INVESTMENTS ORDERS EXECUTION FILLS PORTFOLIO MANAGERS TRADERS BROKERS MARKETS TSX Markets Strategy: Pull business by addressing all criteria considered throughout the investing process • CRITERIA • Investments • Listings (Toronto Stock Exchange and TSX Venture Exchange) • Liquidity • Benchmarking • Orders • Clearing and Settlement • Compliance • Market Impact and Leakage of Information • Program and Algorithmic Trading • Execution • Speed • Crosses • Internalization • Trading Fees • Fills • Centralization

3. There has been steady growth in new listings and equity financings on TSX New Listings on TSX • Equity Financing on TSX • CAGR (4 YR) of 13.5% 204 $38.4B 128 $29.1B 116 $25.8B 107 97 $23.1B $20.9B

4. TSX is the leading equity market for the international mining industry Mining Equity Financings 2004 (US$ Millions) Mining Strengths • Over 50% of the world’s listed mining companies • 1,791 global / world-wide financings in 2004 • 85% by number • 47% by value • Aggregate market capitalization of $162 billion on TSX and $12.3 billion on TSXV • 35% of the 7,895 mineral projects held by TSX and TSXV companies are outside of North America Note: Excludes approximately combined $600M of financings on all other global exchanges Source: Gamah International, December 2004, Preliminary Data Source: InfoMine, Compiled by TSX, January 2005

5. TSX has the highest number of listed oil & gas companies in the world Oil & Gas Strengths Oil & Gas Listings • PetroKazakhstan • Talisman Energy • Petro-Canada • Nexen • EnCana • Canadian Natural Resources • Centurion Energy International TSX Group listed oil & gas companies have projects located around the world • TSX Group had the highest number of listed oil & gas companies in the world at December 31, 2004 • 413 listed companies including 32 energy trusts (156 listed on TSX) • 43 new listings in 2004 • US$7.0B* in financings in 2004 December 2004 * Includes Energy Trusts Source: TSX analysis of company reports. TSX Group has endeavored to ensure accuracy of peer data through analysis of company reports and publicly available information.

6. Structured products and income trusts represent a significant portion of the TSX issuer base, both by market cap and by equity capital raised • Structured Products* and Income Trusts • Structured products and income trusts represented 46% of the total equity raised in 2004 • 175 income trusts listed • Income trust total market cap of $118.7B • 25 income trust IPOs in 2004 • 228 structured products & ETFs listed • Structured product & ETF market cap of $41.5B • 57 structured product IPOs in 2004 2004 Initial Public Offerings – $ Raised by Sector $15.6B C$ Billions $11.3B $9.26B $8.65B $9.12B *Structured Products sector includes 17 ETFs December 31, 2004 *Does not include Structured Products December 31, 2004

7. Income trusts have grown rapidly and performed well • Business trusts are high growth • Top income trusts are well known • New income trust applicants must meet the same stringent listing standards as other business structures • Disclosure obligations include underlying business Limited liability legislation passes in Ontario, Alberta, Quebec (expected to be passed in BC) • Income trusts will be added to the S&P/TSX Composite • S&P/TSX Income Trust Index has outperformed the Composite Business Trusts QMV ($ Billions) Energy Trusts Power & Pipelines REIT S&P is a trade mark of The McGraw-Hill Companies Inc., and is used under license

8. Going public activity remained strong on TSX Venture, especially in Capital Pool Companies (CPCs) CPC Process R Step 1 seed financing of the company + a small prospectus offering to create a corporate vehicle with public distribution Step 2 the Qualifying Transaction (“QT”) an operating company is identified, disclosed and acquired

9. Integrated business models are successful for equity markets • Jointly owned by Deutsche Borse AG and SWX Exchange; 99-03 CAGR of 29% • By volume and value • “LSE Sweepstakes: Loser Beware”, The Daily Deal, Jan 17, 2005 • Source: Literature search; industry interviews; company publications

10. TSX continues to operate a highly-liquid market Fair and Transparent TSX Value Traded and Number of Transactions • Central Limit Order Book • Price-time priority • Full disclosure • Broad access Value Traded CAGR: 17% Efficient No. of Transactions CAGR: 12% • Fast & fully electronic • Minimal market impact costs • Competitive prices • Ease of access Value Traded ($T) Number of Transactions (M) Innovative trading practices: Flexible Value Traded Number of Transactions • Iceberg order • After-hours matching • Anonymous trading • Specialty crosses • $US trading • Market on Close 2005 YTD (June 30) Total Daily Average Value Traded $ 500.1 B $ 3,968.8 MM Number of Transactions 24.3 MM 193,200

11. Market On Close helps investors benchmark by attracting liquidity to improve price discovery at the end of the day MOC Results: 2005 YTD (June 30) MOC Imbalance CCP CCP 7:00am 3:40pm 4:00pm 4:05pm 4:10pm 5:00pm MOC Order Entry Pre - open Open Post Open Imbalance Offset PME XCXL XTS Closing Price Acceptance (CPA) parameter reduced to 10% September 2: Add S&P TSX Mid Cap September 9: Add S&P Small Cap PME session extended to 4:10pm Price Movement Extension (PME) parameter reduced to 5%

12. Multiple Give-Up allows institutional investors to distribute their trading relationships among multiple Participating Organizations Multiple Give-Up mechanism • The executing trader can assign the clearing PO’s number to his/her trader ID. A trader can have more than one trader ID. • Anonymous trades will clear under the clearing PO’s number. • This is available for both Toronto Stock Exchange and TSX Venture Exchange. • There are no additional fees associated with the use of this feature. Benefits to institutional investors • Clearing choices considered independently of the executing PO decision • Control of the distribution of their trading relationships among multiple POs • Reduced business costs and margin requirements

13. Compliance Automated Reporting System (CARS) provides POs with a compliance-monitoring tool INTERNET Overnight batch report CARS generates daily batch reports: • Restricted lists • Client Principal trading (CPT) • Front running • Trend analysis CARS benefits • Monitor and track trading infractions and alerts (post trade) • Develop a compliance strategy • Demonstrate the firms proactive stance on investor protection Database M R D S Trading Platform Broker’s compliance office Trading Platform Trading engine Trading Platform

14. Transparency can lead to leakage of information and increased market impact costs • Two TSX Market products are designed to reduce market impact costs: • Icebergs: partial disclosure of large orders • Anonymity: 001 broker number • Result: TSX is the most competitive in the world, with a market impact cost of only 5.45 basis points Trading impact costs are the largest directly quantifiable costs of a trade. Trading impact costs in Canada are among the lowest in the world. Total Cost of Trade Execution* (Basis points) Commission* 5¢ (17bp) (2002-6¢ - 12bp) Impact 10 ¢ (34 bp) (2002- 9¢ - 20 bp) Delay 23 ¢ (77 bp) (2002-24 ¢ (53 bp) Missed Trades 9 ¢ (29 bp) (2002-12 ¢ 16 bp) Note: Includes all explicit costs relating to a trade, including exchange fees, clearing costs and dealer’s commission Note: Based on averages of each market from 07/03-06/04 * Including average commissions, fees and market impact costs Source: Elkins/McSherry Source: Plexus Group 2003 (US Data based on S&P 500)

15. Program and algorithmic trading are creating higher-velocity trading patterns • Trading Enterprise Review • Single stock performance: • Affected by algorithmic trading • Influences trading in Canadian Based Interlisteds • April 29, 2005 maintenance release • 200-300% performance improvement on tests of common trading patterns • 500% improvement on tests of algorithmic and program trading patterns • 97% of orders on top ten symbols processed within 100 milliseconds in the production environment • June 2005 order number expansion • Expansion from 99,999 to 999,999 orders per broker per symbol • Summer 2005 • Additional changes to address increasing algorithmic message volumes • Fall 2005 • Performance enhancement to ‘boxcar’ processing TRADING Algorithmic Algorithmic Hedge Hedge Passive Passive Active Active SHIFT IN TRADING STRATEGIES By 2008, 40% of US equity trades will be done by algorithms - Source: Cracking the Street’s New Math, Business Week, April 18, 2005 The hedge fund industry has grown dramatically in Canada. There is an estimated $26.6 billion of net assets in hedge funds, including pension fund money. - Source: Investor Economics quoted in Bankers Raise Red Flag Over Hedge Funds, The Globe and Mail, January 20, 2005

16. TSX has continuously upgraded capacity to accommodate order flow growth Capacity and Performance • Increased throughput capacity with additional hardware • Improved single stock performance • Improved messaging efficiencies and order processing • Planned introduction of FIX capability Reliability • Availability at 100% 2005 YTD (June 30) • Business Continuity Planning • New office began functioning January 31, 2005 • Disaster Recovery • Regularly scheduled industry tests involving internal and external stakeholders • 700% increase in orders, cancels and CFOs from 2001 • New peak day in March 2005 of 3.7million orders processed • Capacity maintained at 2.5x • STAMP protocol change to support 10x more orders per broker per day per symbol

17. While the Central Limit Order Book remains the price-discovery mechanism, the upstairs market facilitates customers execution of large trades Cross type 2004 orders entered REGULAR SESSION Crosses 240,754 Anonymous cross 2,193 Internal cross 17,993 REGULAR SESSION and EXTENDED SESSION Basis cross 323 VWAP cross 6,607 EXTENDED SESSION ONLY STS cross 7,013 Central Limit Order Book Crosses 37.0% 39.8% 10.0%

18. TSX designed Firm Order eXecutionTM (FOXTM) to facilitate clients’ internal matching activities GuaranteesDesk OptionsLayoff ProgramDesk RetailOrders • FOX consolidates trading flow across multiple trading order desks • FOX allows previously-withheld trading intents (shown below as dashed lines) to interact safely and confidentially within the firm: ConfidentialIntent ConfidentialIntent ConfidentialIntent ProTraders LiabilityDesk RegisteredTraders FX Stat ConfidentialIntent Situation ArbitrageDesks BlockDesk Hedge ConfidentialIntent ConfidentialIntent FOX System Central Book

19. TSX has steadily reduced trading fees over the last five years January 2004 25% and 40% volume-traded discount tiers 80% discount on cross fees over $20,000 Maximum discount raised to $750,000 November 2000 1/55th of 1% of the value traded $80 maximum per trade 25% and 40% value-traded discount tiers January 2006 1/60th of 1% of the value traded January 2003 $500,000 per month maximum value discount RT-PRO trading fee credit and 30% discount June 2000 1/55th of 1% of the value traded $80 maximum per trade Only active side pays October 2005 1/55th of 1% of the value traded June 2002 Introduction of cross printing facility $10 maximum per cross February 2005 Maximum discount raised to $1 million Prior to June 2000 1/80th of 1% of the value traded $80 maximum per trade Both active and passive sides pay January 2001 1/55th of 1% of the value traded $50 maximum per trade 80% value-traded discount tier added January 2005 Access fee reduction for trading 1 million shares $C millions October 2005 New fee model for NASDAQ/AMEX interlisteds Volume-based Payment for order flow

20. TSX provides the universal platform central to the price-discovery mechanism Trade-throughs • Limit orders in disparate books get skipped, or “traded through” • New competition in Canada re-introduces the possibility of trade-throughs • Access Persons can trade on an ATS regardless of limit orders on other exchanges • Canadian Regulators are undertaking an initiative on “trade throughs” • CSA Discussion Paper 23-403 published July 22, 2005 • Official comment period ends September 19, 2005 • Public forum October 14, 2005 at 10:00 AM • UMIR amendment proposed by RS • Participants and Access Persons must make reasonable efforts to fill better-priced orders prior to executing an inferior order on another marketplace Price discovery • The process of setting a fair price for a security is fundamental to the operation of the equity market. Key attributes include: • Centralization • Broad access • Confidence of the investment community Data dissemination • TSX Datalinx distributes market information to a network of vendors and market participants

21. Disclaimer While the information contained in this presentation is collected and compiled with care, neither TSX Group Inc. nor any of its affiliated companies represents, warrants or guarantees the accuracy or the completeness of the information. You agree not to rely on the information contained herein for any trading, business or financial purpose. This information is provided with the express condition, to which by making use thereof you expressly consent, that no liability shall be incurred by TSX Group Inc. and/or any of its affiliates as a result of any errors or inaccuracies herein or any use or reliance upon this information.