Nasdaq Montreal

The Quebec Government and the Nasdaq Stock Market Inc. (Nasdaq) executed a memorandum of understanding on April 26, 2000 relating to the establishment of a Canadian subsidiary of the Nasdaq exchange in Montreal - to be known as Nasdaq Canada.

Fast-track legislation to implement the agreement has been introduced by the Quebec government, and is expected to pass third reading in the National Assembly by the end of the current session, around June 24, 2000. Speed has been of the essence in efforts to set up the new exchange and the U.S. exchange has been allowed to bypass the usual process of public hearings by the Quebec Securities Commission. The legislation gives the government wide latitude to introduce additional legislation or rules to overcome any potential obstacles.

Under the agreement, all brokers who are members of the National Association of Securities Dealers will be able to operate the new Nasdaq trading terminals as long as they are registered in Quebec and are recognized by the Quebec Securities Commission. In the first phase of implementation, trades will involve only stocks listed on Nasdaq and will be carried out in US dollars. In the next stage, scheduled for implementation in the first three months of 2001, a Nasdaq trading platform will then be introduced throughout the country. Finally, Nasdaq aims to link up all of its international subsidiaries, such as Nasdaq Japan and Nasdaq Europe, and any other future initiatives.

Fasken Martineau DuMoulin LLP is advising the Quebec government on the establishment of the new trading system with a team led by Yvon Martineau and which includes Caroline Thomassin, Gilles Leclerc and René Cadieux. Representing Nasdaq was in-house general counsel, Robert Aber.

Lawyer(s)

Yvon Martineau Caroline Thomassin Gilles Leclerc René Cadieux