Currently, there are 146 Canadian companies listed on Nasdaq. Through the first three quarters of 2000, Nasdaq Canadian companies generated on the average trading day US $3.13 billion (C $4.83 billion) in dollar volume. These totals exceed those for any other Canadian exchange. With Nasdaq workstations now in place in Montreal, Canadian investors can get immediate access to both the Canadian companies listed on Nasdaq as well as all other Nasdaq issues.
In the first phase of Nasdaq Canada, Nasdaq terminals have been installed initially in ten Canadian securities firms in Montreal. This will enable these firms to trade the 5,000 Nasdaq-listed companies directly through their local broker, including the 42 Canadian companies previously listed solely on Nasdaq U.S.
Today’s opening is the first phase of a possible three phases in the development of Nasdaq Canada, as follows: Phase One:
- Nasdaq terminals placed in Montreal;
- Participation by NASD member firms and registered personnel from Montreal;
- Trading of all Nasdaq-listed securities;
- Trading in U.S. dollars;
- Regulation by NASDR in collaboration with The Québec Securities Commission (CVMQ);
- Launching of Nasdaq Canada Web site (www.nasdaq-canada.com);
- Debut of Nasdaq Canada Index, tracking market performance of Canadian Nasdaq-listed stocks; and
- Opening of Nasdaq Canada office in Montreal.
Coincides with introduction of Nasdaq’s SuperMontage, which will provide for the display of multiple prices from each market participant;
- Involves participation by non-NASD member firms in Canada;
- Trading in both U.S. and Canadian Dollars;
- The opportunity to list Canadian companies exclusively on Nasdaq Canada; and
- Regulatory oversight by both NASDR and the Quebec Securities Commission (CVMQ).
- True Globalization: linking of Nasdaq Canada with Nasdaq, Nasdaq Japan, and Nasdaq Europe.
In addition to the installation of Nasdaq Workstations II® (NWIITM) at the trading desks of these Canadian NASD member firms, Nasdaq Canada also created the Nasdaq Canada Index (symbol:CND), which tracks the market performance of Canadian-listed Nasdaq stocks. Index calculation and cumulative volume for all index components will be updated in real time throughout the trading day. Prices for company shares will be delayed 15 minutes. CND will be a market value weighted index and will be displayed on the newly launched www.nasdaq-canada.com Web site. In addition to the index value, prices and volume information, this Web site provides share volume comparisons for dually listed Nasdaq and Toronto Stock Exchange stocks and offers extensive corporate information as well.
This is Nasdaq’s first step in an effort to bring Canadian investors the opportunity to invest in high-growth Canadian companies and U.S. securities. Initially, trading in Nasdaq U.S.- listed securities will be conducted in U.S. dollars. In this first phase, market participation will include National Association of Securities Dealers, Inc. (NASD®), member firms and registered personnel only. The success of Phase One will determine the timing on the rollout of Phases Two and Three of Nasdaq Canada.
"We are excited about the opportunities that lie ahead for us in Canada," said Frank G. Zarb, Chairman and Chief Executive Officer of The Nasdaq Stock Market. "With Phase One in place, we are setting in motion the first steps in the market’s development after which we will move forward with Phases Two and Three. Building on this momentum, we see Nasdaq Canada as providing emerging Canadian firms with enhanced access to equity capital and contributing to job creation and economic growth in Canada. Our ultimate goal is linking Nasdaq Canada to a global trading platform that will include Nasdaq markets in Asia and Europe."
"The launch of Nasdaq Canada’s operations in Montreal covering the entire Canadian market is an eloquent confirmation of the vitality of Quebec’s economy, especially in growth sectors such as information technology and biotechnology, which are heavily represented on the Nasdaq Market," said Quebec Prime Minister, Lucien Bouchard. "This also demonstrates the common objectives the Quebec government and Nasdaq authorities have to offer all Canadian companies the best possible access to a huge pool of capital necessary for them to grow, and to offer investors the opportunity to trade as many securities a s possible at the best price. "
John Wall, President of Nasdaq International said, "Today’s announcement brings great benefit to Canadian investors and brokers. By opening Nasdaq Canada, we anticipate Canadian investors will be given direct access to the numerous Nasdaq stocks that have been instrumental in shaping the new economy. As this market grows, it will provide for the establishment of a pool of capital for new, young Canadian companies as they reach the public market."
Bernard Landry, Deputy Prime Minister and Minister of State for the Economy and Finance of Quebec noted, "The favorable reception the business and financial sectors have extended to Nasdaq confirms the soundness of this initiative. Nasdaq’s arrival in Quebec marks a major contribution to Quebec’s financial sector and will enhance competition and liquidity of markets, within a proven regulatory environment. The increased competition resulting from Nasdaq Canada’s arrival on the Canadian market should quickly prove beneficial for companies and investors. "
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.
