Market Regulation Services Inc. Adopts Universal Market Integrity Rules Effective April 1st

Market Regulation Services Inc. (RS) announced that as of April 1, 2002, all trading of equity securities in Canada will be subject to new trading rules, called the Universal Market Integrity Rules (UMIR). The new rules will apply to trading of securities listed on the Toronto Stock Exchange Inc. (TSE) and Canadian Venutre Exchange (CDNX). In addition, the universal rules will apply to future marketplaces, including Alternative Trading Systems (ATSs).

"Universal rules are not just a prerequisite but an utmost necessity in allowing competition in the trading of equity securities to flourish in Canada," said Tom Atkinson, President & CEO of RS. "Universal rules that are applied and enforced consistently in competitive marketplaces are a practical, workable solution to ensure that trading is carried out in a fair and orderly manner. Marketplaces should compete, but market regulation should not become a commodity to be traded between marketplaces."

UMIR were developed over the past two years following extensive industry consultation as part of the Canadian Securities Administrators' initiative to create a framework for competitive operation of traditional exchanges and ATSs. RS is responsible for administering UMIR and any changes requested by RS are subject to the approval of applicable securities regulatory authorities in Canada.

"UMIR were borne from an unprecedented consultative process by the industry and for the industry to create a regulatory framework that is fair to all participants," said Mr. Atkinson. "UMIR's objective is to maintain a level playing field, which ultimately benefits investors by reducing to all extents possible the regulatory risks of equities securities investing in Canada."

UMIR will replace the Canadian Securities Administrators Trading Rules. UMIR, developed to ensure integrity and a fair, orderly marketplace, will:

• Apply to equities trading in all marketplaces;
• Apply equally to all dealers who are accessing a marketplace;
• Not be capable of being circumvented by directing trading activity to another marketplace; and
• Incorporate, to the greatest extent possible, any exceptions to the rules that are required to accommodate the workings of an individual exchange or quotation and trade reporting system.

RS is committed to working with the industry to ensure a smooth transition to the new rules. RS has conducted numerous industry workshops with market participants and investment dealer firms across the country to prepare for the adoption of UMIR. Full-text versions of UMIR are available on RS's web site at www.regulationservices.com.

By monitoring trading and representing marketplaces across the country, RS offers consistency, neutrality, and integrity. RS will not show preference for any one marketplace or jurisdiction when administering, interpreting and enforcing common trading rules on Exchanges, QTRS, or ATS that retains its services.