November 21, 2003

REQUEST FOR COMMENTS � REGISTRATION REQUIREMENTS FOR CNQ DEALERS AND APPROVED TRADERS AND APPEALS OF CNQ DECISIONS

This Notice replaces CNQ Notice 2003-008 dated November 10, 2003, which is withdrawn.

The Board of Directors of Canadian Trading and Quotation System Inc. (�CNQ�) has approved amendments to the CNQ Rules removing the requirement that CNQ Dealers and Approved Traders be Ontario registrants and removing the description of appeal rights to securities commissions. The proposed amendments are attached to this notice as Appendix �A.�

The Board has determined that the proposed amendments are in the public interest and have authorized them to be published for public notice and comments. Comments should be made no later than 30 days from the date of publication of this notice and should be addressed to:

Canadian Trading and Quotation System Inc.
BCE Place, 161 Bay Street
Suite 3850, P.O. Box 207
Toronto ON
M5J 2S1

Attention: Timothy S. Baikie, General Counsel & Corporate Secretary
Fax: 416.572.4160
E-mail: Timothy.Baikie@cnq.ca

A copy should be provided to the Ontario Securities Commission at the following address:

Capital Markets Branch
Ontario Securities Commission
Suite 800, Box 55
20 Queen Street West
Toronto ON
M5H 3S8

Attention: Cindy Petlock, Manager, Market Regulation
Fax: 416.593.8240
E-mail: cpetlock@osc.gov.on.ca

Registration Requirements

CNQ rules currently require both CNQ Dealers and Approved Traders to be Ontario registrants as a condition of approval. This has become a barrier to access as some out-of-province traders are reluctant to seek Ontario registration where it would not otherwise be required.

The Board has determined that the burden these requirements impose is disproportionate to the benefit to be obtained. As applicable securities legislation sets out registration requirements based on activities conducted by the firm or the trader within the jurisdiction, it is not necessary for CNQ to set additional requirements.

If the amendments are approved, firms and traders will continue to have the responsibility for ensuring they have all necessary registrations, including Ontario registrations if applicable, for the business they are undertaking. In particular, firms must be registered with a Canadian securities regulatory authority.

Appeal Rights

The rules currently state that appeals of CNQ decisions may be brought to the Ontario Securities Commission. Some securities commissions take the view that appeal rights to those commissions may also exist under their legislation. As the appeal rights arise under applicable securities law and not by virtue of CNQ rules, reference to them in CNQ rules is unnecessary and may be confusing. Existing rights of appeal will not be affected by the change.

Rules of Other Jurisdictions

Neither the TSX nor the TSX Venture Exchanges have specific registration requirements for Approved Traders or Participating Organizations.

Alternatives Considered

An alternative was considered to refer to rights of appeal pursuant to the provisions of applicable securities legislation. However, this statement would be too vague to be meaningful. Instead, the description of appeal rights has been removed altogether.

APPENDIX �A�

Be it resolved that:

1. Rule 1-105(2) is repealed.

2. Rule 2-101(a) is amended by deleting the words �an Ontario registrant and�.

3. Rule 4-101(1) is amended by deleting the words �is an Ontario registrant and�.

4. Rule 4-101(2) is repealed and replaced with the following:

�A CNQ Dealer shall ensure that each person entering orders on the CNQ System has all necessary registrations under applicable securities legislation and is trained in and understands these rules.�

5. Section 5.3 of Policy 1 is repealed.

Passed and enacted this 5th day of November, 2003 to become effective upon Ontario Securities Commission approval following public notice and comment.

�Ian Bandeen�
Chairman

�Timothy Baikie�
Secretary