Under the proposed agreement, the parties will cooperate to facilitate the recognition of Nasdaq Canada as a stock exchange based in Montreal. Upon approval of legislation by the Government of Quebec, Nasdaq Market Maker Level III terminals will be placed at broker/dealers within Quebec. At the beginning, participation shall be by NASD member firms and registered personnel only. Regulation shall be performed by NASD Regulation (NASDR) as appropriate, and the Quebec Regulatory Authority (QRA). Trading shall initially be only in Nasdaq U.S. equity securities in U.S. dollars.
"The strategy of openness on the world adopted by Nasdaq harmonize perfectly with Quebec's openness to free trade," said Quebec Prime Minister Lucien Bouchard. "To date, the results clearly show that Quebec companies have benefited substantially from this move to freer markets. We intend to continue in the same direction and take full advantage of the strategic opportunity provided by Nasdaq's arrival."
"Our agreement in principle with the Quebec government to create Nasdaq Canada will make it easier for Canadian investors to participate in the Nasdaq Stock Market, U.S. investors to participate in the Canadian economy and for Nasdaq to help foster a new generation of growth companies in Canada," said Frank G. Zarb, Chairman and Chief Executive Officer of the National Association of Securities Dealers, Inc. (NASD®)-parent of The Nasdaq Stock Market®. "Canada has 128 companies currently listed on Nasdaq, more than any other nation outside of the U.S., and this agreement will only draw us closer."
Said Bernard Landry, Deputy Prime Minister and Minister of State for the Economy and Finance of Quebec, "Today's announcement, of which we are particularly proud, is the result of a lengthy process involving many consultations with the financial and business communities over the last few months. These consultations enable us to state today that the arrival of Nasdaq satisfies a real need, both for companies and investors. That is why we are very confident of Nasdaq's success in Montreal."
Under the agreement, Quebec will take appropriate regulatory or legislative action to recognize the precedence of Nasdaq's rules as related to transactions occurring in Nasdaq Canada, although it is recognized that modifications may be required to comport with Canadian laws and regulations.
The Nasdaq Stock Market lists nearly 5,000 companies, has a larger dollar volume, and trades more shares per day than any other U.S. market. Nasdaq® is a subsidiary of the National Association of Securities Dealers, Inc. (NASD®), the largest securities-industry, self-regulatory organization in the United States. For more information about Nasdaq, visit the Nasdaq Web site at www.nasdaq.com or the Nasdaq NewsroomSM at www.nasdaqnews.com.
