CDNQ Inc. is seeking regulatory approval for a new quotation and trade reporting system for securities not listed on a recognized Canadian stock exchange.

Since the Canadian Dealing Network ceased operations on Oct. 6, 2000, there has been no recognized marketplace to facilitate the trading of securities that are not exchange listed. These are securities that were previously listed on CDN; did not wish to be listed on a recognized Canadian stock exchange; do not qualify for listing on the CDNX; or are from newly-formed public companies.

“There is a tremendous marketplace opportunity here,” said Jim Boyle, president of CDNQ Inc. “Firstly, it will create a feeder function to the more senior exchanges and, at the same time, provide a vitally important service to the investors and issuers. To indicate market demand, had the CDN continued to year end last year, its core trading volume would have been over 3 billion shares, close to 350,000 trades with a value of over $ 4 billion.”

“We are in very productive discussions with TSE Regulation Services to provide CDNQ with market surveillance and other regulatory services. We have not been discouraged by the OSC from making application for a Recognition Order. The regulatory environment is very encouraging for us”, added Boyle.

CDNQ has set up a series of consultation meetings with interested investment dealers, ensuring full input into its model. Initial interest from investment dealers has been high. Investment dealers registered in Ontario may apply to be approved as CDNQ dealers.

Companies not currently listed on a Canadian exchange may apply to be CDNQ issuers.

“Investors are more savvy these days, thanks to the Internet and other technology advances. We believe this initiative will permit small issuers to quickly and cost effectively provide investors with meaningful information and disclosure” said Jim Boyle.

CDNQ Inc. will provide the CDNQ Quotation and Trade Reporting System to dealers, offering real-time quote, price, volume, recent trade history and dealer information about CDNQ Issuers’ securities. The system will allow dealers to enter quotation information for dealer-to-dealer trading between 9:00 and 17:00 ET on all business days.