(September 25 – 15:40 ET) – At a special general meeting held today, the members of the Montreal Exchange approved its demutualization. Following the meeting, Luc Bertrand, president and CEO, provided an overview of the Montreal Exchange Inc’s business plan which includes the implementation of automated trading, and the marketing and development of new and existing products.
The Montreal Exchange will become a for-profit corporation on October 1. Current members will become shareholders while maintaining trading privileges. The changes in structure will open access to new sources of capital for future development.
In addition, the new electronic trading platform, called SAM (Montreal Automated System), was launched today. The Ten-year Government of Canada Bond Futures contract (CGB) will be the first product to benefit from this new technology.
The CGB is also part of a new program to revitalize the Montreal Exchange’s market. CIBC World Markets Inc. and TD Securities Inc. will assume market making responsibilities. The other derivative products at the Montreal Exchange, including the Three-month Canadian Bankers’ Acceptance Futures contract (BAX) and the S&P/TSE 60 Index Futures (SXF) will gradually be transferred to the new trading system.
The Montreal Exchange also intends to launch two new products by the first quarter of 2001: single stock futures as well as futures contracts on sectorial indices. The new products are subject to regulatory approval.
“Our company has made significant new strides as a derivatives exchange. With for-profit status, a strong management team, a state-of-the-art trading platform and a structured and innovative business plan, Montreal Exchange Inc. is positioned to become a leading exchange for derivative products,” said Bertrand at a news conference following the members’ vote.
-IE Staff