TSX Group CEO Optimistic Over Future Cross Border Relationship - Richard Nesbitt Says There Are Opportunities In An Improved And Open Relationship Between Securities Markets On Both Sides Of The Border

Speaking to the American Chamber of Commerce in Canada luncheon today in Toronto, TSX Group CEO Richard Nesbitt reassured business leaders that opening the markets across the borders will reap similar benefits to what North American Free Trade Agreements has done for trade. He also called for the support of the group to help make this initiative a reality. "The result, I am sure, would not be to eliminate our differences but rather let us all be more prosperous in our different ways. That has been the experience of free trade so far," said Mr. Nesbitt.

In his speech he referred to a communiqué, signed in March in Texas, by the leaders of the three NAFTA countries – Presidents Bush and Fox and Prime Minister Martin. The communiqué stated that the United States, Canada and Mexico will work together towards the freer flow of capital and the efficient provision of financial services throughout North America.

Mr. Nesbitt pointed out in his speech that negotiators believe there is a need to find greater synergies among institutions and improve supervision and regulation according to the highest international standards. "Their view is that further financial integration on a North American basis should reduce transaction costs for people and companies, speed up these transactions, and eliminate inefficiencies that hinder access to capital for micro and medium-sized companies," he added.

And it is in those small and medium sized companies where the TSX has a competitive advantage. Mr. Nesbitt believes given the opportunity, Toronto Stock Exchange and TSX Venture Exchange would be effective competitors in this space south of the border. In fact, the recent news of a planned merger between the New York Stock Exchange and the Archipelago Exchange and NASDAQ and Instinet has put a new spin on all levels of competition among exchanges in North America. "Consolidation provides TSX Group with a unique opportunity to showcase our markets and services."

Mr. Nesbitt's remarks can be viewed by clicking here.