CNSX Markets Inc. announced Monday that BAC Canada Finance Company 5 year Extendible Step Up Semi-Annual Pay Medium-Term Notes, Series 1 have been posted for trading on the Canadian National Stock Exchange.

“We believe that this new product represents the start of an exciting new debt market in Canada,” says Richard Carleton, interim CEO of CNSX Markets.

“Issuers will be able to take advantage of the cost effectiveness of the exchange’s listings process and retail investors will be able to benefit from the transparency of the exchange’s rules in trading these fixed income-based products,” he adds.

“This is the first structured product to list on CNSX,” adds William Woods, managing director – listed market. “Structured products markets are growing rapidly on stock exchanges in America and Europe and CNSX plans to be Canada’s primary exchange for debt securities.”

The notes are trading under symbol BMF.DB.A and the issuer expects to raise up to $20 million. They are currently trading on an “if, as and when issued” basis until November 9.

The notes are unsecured and unsubordinated debt securities of BAC Canada Finance Co. (formerly Merrill Lynch Canada Finance Co.), all amounts payable are unconditionally guaranteed by Bank of America Corp. The company will pay interest semi-annually during the term of the motes at an initial rate of 4.00% from and including Nov. 15, 2011 to, but excluding Nov. 15, 2012.

Stuart Investment Management Ltd. acted as agent on the offering of the notes and will use its best efforts to initiate and ensure a secondary market is maintained for the notes on CNSX.