Winnipeg Commodity Exchange Inc.'s Committee Structure Following Demutualization Leads New Path To Changes

In February 2002, Winnipeg Commodity Exchange Inc.'s (WCE or Exchange) new, shareholder elected Board of Directors met and decided to adopt an organizational model that would allow the Board to concentrate on more traditional corporate matters. To facilitate this, much of the operational aspects of the exchange would be delegated to Exchange management and committees.

In light of these responsibilities being delegated to the committees, the Board considered the size, composition and processes followed by the committees with particular emphasis on the contract committees. As a result, the size of the committees has been reduced and the contract review process has been changed.

It is important that all market participants be given an opportunity to comment on proposed contract changes where such changes are considered material. The new format will provide an opportunity, for all those with an interest in a contract, to make comments on proposed change either verbally or in writing.

The new process will be as follows:

1. Committee and staff will consider and agree to proposed changes to contracts.
2. Market participants and interested parties, such as producer groups and end users, will be provided with the proposed changes and asked to provide comments to the committee either verbally or in writing.
3. Committee/staff will consider comments and develop final rule changes.
4. Rules will then be forwarded to Manitoba Securities Commission (MSC) for approval.

The process is expected to result in a more effective contract review process and more efficient use of time by committee members and WCE staff, while at the same time giving all market participants the opportunity to comment on proposed contract and other rule changes. The proposed committee changes are subject to MSC approval.

Anyone interested in having their name placed on a distribution list to receive information on proposed contract/rule changes as recommended by committee and staff should provide their name and email address to WCE. To do so, please contact Ms. Sheryl Silverberg at ssilverberg@wce.mb.ca.