News Release

Vancouver – The B.C. Securities Commission is asking for public comment on a proposal to allow Canadian dealers more efficient access to a U.S.-based electronic stock market.

Under a NASDAQ Canada proposal, investment dealers could gain more efficient access from their offices in British Columbia to the trading services of the NASDAQ Stock Market, Inc. (NASDAQ U.S.) that includes the NASDAQ Stock Market, SmallCap market, and Over-the-Counter Bulletin Board quotation service.

Currently, many Canadian dealers send their trading orders to NASDAQ U.S. indirectly through intermediaries such as electronic communications networks, affiliated U.S. broker-dealer, or other U.S. broker-dealers. These intermediaries, in turn, then send the orders directly to NASDAQ U.S.

Under the proposal, Canadian dealers could set up a U.S.-regulated affiliate on their own premises in B.C., staff it with employees from the Canadian dealer, and use their existing infrastructure. Currently in B.C., the U.S. affiliate would have to be registered as a dealer with the commission and would have to join the Investment Dealers Association of Canada.

The proposal is asking the commission for an exemption from this registration requirement.

NASDAQ suggests its proposal would let Canadian dealers reduce costs and exercise greater control over trade orders executed on the trading services of NASDAQ U.S. The proposal could also lead to better regulatory oversight and a more transparent process.

The commission is seeking public comment on this proposal until Aug. 19, 2003.

NASDAQ U.S. is a registered securities information processor under U.S. securities law. It is a subsidiary of NASD, a registered self-regulatory organization in the U.S. NASDAQ Canada is a wholly-owned subsidiary of NASDAQ U.S. The U.S. Securities and Exchange Commission oversees NASDAQ U.S.

The B.C. Securities Commission is the independent provincial government agency responsible for regulating trading in securities and exchange contracts within the province. Copies of the proposal can be viewed in the documents database of the commission’s website www.bcsc.bc.ca or by contacting Andrew Poon, Media Relations, 604-899-6880.