stockmarketsindia.com

/CNW/ - TMX Group Inc. today issued a position paper
that discusses its views on the appropriate Canadian solution to the
G-20 leaders objectives related to improving the Over-the-Counter (OTC)
derivatives markets. The paper, entitled: Transparency,
Market Integrity & Risk Management: The Role of the Regulated Exchange,
outlines the various goals set out by the G20 leaders and matches them
to the capabilities and technology available through Canadian partners
operated by TMX Group, such as Montréal Exchange, Canadian Derivatives
Clearing Corporation (CDCC) and Natural Gas Exchange (NGX).

Commenting on the position paper, TMX Group Chief Executive Officer
Thomas Kloet stated:

In response to the recent global economic crisis, G-20 leaders have
called for important improvements to the Over-The-Counter derivatives
market. We are pleased to put forward our views on how TMX Group, in
partnership with the dealer and user community, can provide domestic
solutions, linked to other global OTC marketplaces and clearinghouses.
An effective solution must reduce risk, enhance transparency and, most
importantly, increase the integrity of the Canadian system. Canada has a
well-earned reputation for stability and trust and the world is looking
to us to show leadership in tackling this important challenge.

Alain Miquelon, President of Montréal Exchange and Group Head,
Derivatives for TMX Group added the following comments:

This is a critical undertaking and work is already underway on a number
of initiatives. We look forward to partnering with the industry and
regulatory authorities as we bring robust, highly tailored solutions for
OTC derivatives clearing to the market rapidly and effectively. As an
operator of a globally recognized exchange and an AA-rated derivative
clearinghouse, we have the expertise, the technology and the track
record and are building solutions to help reduce risk and strengthen the
Canadian capital markets.

Overview of Position Paper

The document expands on the commitments made by the G20 leaders and
demonstrates the strong capabilities that exist in Canada today. This
includes:

Prudential oversight of financial institutions - aimed at reducing the
risk of insolvency of institutions.

Improved risk management - in terms of liquidity, operational risk
(such as internal processes, people and systems) and counterparty risk.

Increased transparency - both in the price formation process as well
as post-trade.

Promotion of market integrity - inherent in regulated markets and
clearing houses.

Mitigation of systemic risk - which can benefit from leveraging the
existing capabilities of an established Canadian clearing house and
electronic exchange.

Reinforcement of international cooperation - critical in a global
environment, effective central counterparty clearing (CCP) linked to
other international markets will limit the risk of too big to fail
and allow for a more robust risk management framework.

The position paper can be found on the TMX Group website at www.tmx.com.

Repo Market Solution

Recognizing the capabilities available in Canada, the Investment
Industry Association of Canada (IIAC) chose TMX Groups derivatives
clearing house, the CDCC, to develop the infrastructure for
central-counterparty services to the Canadian fixed-income market on
December 15, 2009. The solutions under development, combined with TMX
Groups deep expertise in the derivatives exchange and clearing space,
provide strong foundations and synergies in the development of broader
OTC derivatives clearing solutions.

Montréal Exchange

The Montréal Exchange, a wholly owned subsidiary of TMX Group, is
Canadas financial derivatives exchange. MX lists interest rate, index,
equity and exchange-rate derivatives on Canadian underlyings.
Approximately 94,000 futures contracts, representing $60 billion CAD in
notional value, trade on MX futures markets every day, mainly in its
three flagship products: the BAX (Three-Month Canadian Bankers
Acceptance Futures), CGB (Ten-Year Canada Government Bond Futures) and
the SXF (S&P/TSX 60 Futures). Another 69,000 options on Canadian stocks,
ETFs, and the Canada/US exchange rate are traded on a daily basis.
(Note: Data as of May, 2010.)

CDCC

As the issuer, clearinghouse and guarantor of MXs exchange-traded
derivatives in Canada, the CDCC has filled a key role in the Canadian
financial markets since its inception in 1975. CDCCs strategic
expansion into the non-listed markets began in 2006 with the
introduction of Converge®. Given the current market landscape as well as
its strategic focus, CDCC is well prepared to expand its service
offerings to the broader over-the-counter markets by delivering:

A legal and regulatory framework which provides certainty in default
scenarios

A standardized and robust risk management philosophy.

A sophisticated and flexible technology solution, which provides for
short time to market on new initiatives with minimal additional
technological investment on the part of users

NGX

Natural Gas Exchange Inc. (NGX) provides electronic trading, central
counterparty clearing and data services to the North American natural
gas, oil and electricity markets. Contracts listed for trading on NGX
include physical fixed price, physical basis contracts, physical spread
contracts, and physical daily and monthly index contracts along with
various cash-settled contracts. NGX has over 220 contracting parties in
Canada and the U.S., who have executed the standard Contracting Partys
Agreement (CPA) and transact in aggregate over CAD $70 billion/annum in
gross notional value. NGX also acts as central counterparty for
transactions on an electronic marketplace or OTC.

About TMX Group (TSX-X)

TMX Groups key subsidiaries operate cash and derivative markets for
multiple asset classes including equities, fixed income and energy.
Toronto Stock Exchange, TSX Venture Exchange, Montreal Exchange,
Canadian Derivatives Clearing Corporation, Natural Gas Exchange, Boston
Options Exchange (BOX), Shorcan, Equicom and other TMX Group companies
provide trading markets, clearing facilities, data products and other
services to the global financial community. TMX Group is headquartered
in Toronto with offices in Montreal, Calgary and Vancouver. For more
information about TMX Group, visit our website at www.tmx.com.