TSX Group and International Securities Exchange Announce DEX(TM) - A New Canadian Derivatives Exchange

  
    
  
  
    
      TSX Group CEO Richard Nesbitt and International Securities Exchange 
      (ISE) President and CEO David Krell today announced the creation of DEX, 
      a new derivatives exchange to be launched by two of the world’s 
      leading marketplaces. DEX, which is scheduled to begin operations in 
      March 2009, will be owned 52% by TSX Group and 48% by ISE and will list 
      and trade options, futures and options on futures on a range of Canadian 
      securities.
    
    
      DEX will pair TSX’s pre-eminent position as 
      the leading Canadian market for Canadian securities together with ISE’s 
      superior derivatives trading platform, including OMX’s 
      trade match engine and ISE’s complementary 
      suite of technology. With a distinct order book and trading rules, DEX 
      will complement TSX Group’s exchanges to 
      provide investors with a full suite of trading products and strategies.
    
    
      “We are excited to announce this new exchange 
      with ISE, a company that has shown great innovation and growth in the 
      very competitive US derivatives market,” said 
      Richard Nesbitt, TSX Group’s CEO. “Our 
      commitment to customers is to provide innovative products and services 
      and the best trading solutions. With the launch of DEX, we will be 
      offering both cash and derivatives trading, and providing maximum 
      flexibility, to our customers.”
    
    
      ISE President and CEO David Krell said, “We 
      believe this unique opportunity will bring additional value to our 
      members and shareholders as well. We have seen tremendous growth in ISE’s 
      derivatives offering across the US, and we see this alliance as a first 
      step in expanding our international footprint. Working with a leading 
      exchange group like TSX Group is clearly a natural fit.”
    
    
      Between now and the launch in 2009, professionals from both TSX Group 
      and ISE will work on the implementation strategy. Robert Fotheringham, 
      TSX Group’s Vice-President of Trading, and 
      Thomas Ascher, ISE’s Chief Strategy Officer, 
      are leading the initiative. Mr. Nesbitt added, “We 
      have a busy agenda and exciting opportunities ahead of us with the end 
      result being a world-class derivatives exchange for Canada. This is 
      truly an exciting time for our markets and we look forward to the launch 
      of DEX in 2009.”
    
    
      “We are pleased to be executing on one of our 
      key strategic initiatives to deliver ISE’s 
      derivatives expertise and trading capabilities to the international 
      marketplace. This venture with TSX Group will create a new platform to 
      expand the trading alternatives available for investors in Canadian 
      securities and will clearly benefit the Canadian market,” 
      said Mr. Krell.
    
    
      The anticipated cost of setting up this new exchange between now and the 
      launch in March 2009 is approximately $26 million (Canadian). The costs 
      will be split between TSX Group and ISE according to the share ownership 
      of the new initiative.
    
    
      This binding arrangement between TSX Group and ISE is subject to certain 
      usual and customary conditions, including applicable regulatory filings 
      and approvals, and is subject to termination in certain circumstances.
    
    
      Certain statements constitute forward-looking statements and are not 
      historical facts but are based on certain assumptions and reflect TSX 
      Group’s current expectations regarding future 
      results or events. These statements are subject to a number of risks and 
      uncertainties that could cause actual results or events to differ 
      materially. Some of the risk factors that could cause actual results or 
      events to differ materially from current expectations are outlined in 
      TSX Group’s Annual Report, Quarterly Reports 
      and Annual Information Form filed with securities regulators from time 
      to time.
    
    
      Certain matters discussed in this press release are “forward 
      looking statements” intended to qualify for 
      the safe harbor from liability established by the Private Securities 
      Litigation Reform Act of 1995. These statements relate to future 
      events or ISE’s future financial performance, 
      and involve known and unknown risks, uncertainties and other factors 
      that may cause ISE’s actual results, levels 
      of activity, performance or achievements, to be materially different 
      from those contemplated by the forward looking statements. ISE 
      undertakes no ongoing obligation, other than that imposed by law, to 
      update these statements. Factors that could affect ISE’s 
      results, levels of activity, performance or achievements and cause them 
      to materially differ from those contained in the forward looking 
      statements can be found in ISE’s filings with 
      the Securities and Exchange Commission, including ISE’s 
      annual report on Form 10-K, current reports on Form 8-K and quarterly 
      reports on Form 10-Q, as amended.
    
    
      Events Scheduled for March 5 (Eastern 
      Standard Time)
    
    
      8:30 a.m. Joint TSX/ISE Analyst Call
    
    
      TSX Group Inc. and ISE will hold an Analyst Call at 8:30 a.m. this 
      morning to discuss today’s announcement.
    
    
      Phone numbers for the live call are: 416-644-3430 and 1-800-590-1817
    
    
      Richard Nesbitt, Chief Executive Officer, TSX Group and David Krell, 
      International Securities Exchange President and CEO, along with the CFOs 
      of both corporations, will participate on the call. An audio replay of 
      the conference call will be available at 416-640-1917 and 
      1-877-289-8525, passcode 21221534#.
    
    
      The audio web cast of the conference call will also be available on TSX 
      Group’s website at www.tsx.com, 
      under Investor Relations and on the International Securities Exchange 
      website at http://www.iseoptions.com/ 
      under the Investor Relations section.
    
    
      10:00 a.m. TSX/ISE Joint News Conference
    
    
      TSX Group CEO Richard Nesbitt and International Securities Exchange 
      President and CEO David Krell will hold a news conference at 10:00 a.m. 
      March 5 in the TSX Gallery. A live feed of the news conference will be 
      available in TSX Group’s Montreal office. For 
      an audio feed of the news conference, dial in at 416-644-3432 or 
      1-800-590-1508. An audio replay of the news conference will be available 
      by calling 416-640-1917 or 1-877-289-8525, passcode 21221563#.
    
    
      Toronto: TSX Broadcast Centre, Main Floor, 130 King Street West, 
      Toronto (King and York Streets)
    
    
      Montreal: TSX Group Montreal Office, Suite 1100, 1000 Sherbrooke 
      Street West
    
    
      Montreal, QC
    
    
      Television Editors -- Media may pick up a feed from the TOC (television 
      operations centre) for the news conference. The feed is named TSX 
      Transmit 2 and is produced at the TSX and sent live to the TOC.
    
    
      About TSX Group Inc. (TSX-X)
    
    
      TSX Group operates Canada's two national stock exchanges, Toronto Stock 
      Exchange serving the senior equity market and TSX Venture Exchange 
      serving the public venture equity market, Natural Gas Exchange (NGX), a 
      leading North
    
    
      American exchange for the trading and clearing of natural gas and 
      electricity contracts and Shorcan Brokers Limited, the country's first 
      fixed income inter-dealer broker. TSX are the initials attached to the 
      core equity operations of TSX Group (www.tsx.com): 
      Toronto Stock Exchange, TSX Venture Exchange, TSX Markets, TSX Datalinx, 
      and TSX Technologies. TSX Group is headquartered in Toronto and 
      maintains offices in Montreal, Winnipeg, Calgary and Vancouver.
    
    
      About ISE
    
    
      International Securities Exchange Holdings, Inc. (NYSE: ISE), through 
      its subsidiaries, operates a family of innovative securities markets. 
      ISE is founded on the principle that technology and competition create 
      better, more efficient markets for investors and consists of an options 
      exchange, a stock exchange and an alternative markets platform. ISE 
      continually enhances its trading systems and develops new products to 
      provide investors with the best marketplace and investment tools to 
      trade smarter.
    
    
      ISE developed a unique market structure for advanced screen-based 
      trading systems and in May 2000 launched the first fully-electronic US 
      options exchange. Currently, ISE operates the largest U.S. equity 
      options exchange and is among the leading options exchanges in the 
      world. ISE offers index options, including a portfolio of proprietary 
      index products, and enhanced market data products for sophisticated 
      investors. ISE FX Options™ are slated to 
      launch in 2007.
    
    
      ISE Stock Exchange, launched in September 2006 with strategic partners, 
      includes an innovative MidPoint Match™ 
      platform which offers investors continuous price improvement. MidPoint 
      Match was integrated with a fully-displayed Best Bid Offer market in the 
      fourth quarter of 2006.
    
    
      ISE’s alternative markets business currently 
      consists of an events market trading platform known as Longitude. 
      Longitude’s patented and proprietary 
      technology provides a unique parimutuel structure for derivatives 
      auctions which results in greater trading and pricing flexibility for 
      market participants.
    
    
      For more information about ISE and its options exchange, visit www.iseoptions.com 
      and for more information about ISE Stock Exchange, visit www.isestock.com. 
      Additionally, to learn more about ISE alternative markets technology, 
      visit www.longitude.com.