Bonds

Chapter 1 - page 8

Almost all bonds and debentures are sold through dealer merkets (about 14 times the volume that is conducted for unlisted equities); however, the volume of unlisted equity trading is much smaller than the volume of exchanged-traded equity transactions.

It is important to note that this market does not set listing requirements.

Unlisted trades needs not to be reported except in Ontario, where the Ontario Securities Commission (OSC) requires such trades to be reported on the Canadian Unlisted Board Inc. automated system.

Alternative trading systems

Three electronic trading systems handle much of the bond and money market OTC (over-the-counter) trades in Canada:

1- CanDeal: A joint venture among Canada's larges six investment dealers, and a member of IIROC (Investment Industry Regulatory Organization of Canada). Handles federal goverment bonds and plans to expand to provincials, corporate debt and commercial paper. Handles over 80% of market transactions.

2- CBID: IIROC member and ATS. Maintains retail and institutional market places, dealing with more than 2,500 debt instruments.

3- CanPX: Joint venture of Investment Industry Association of Canada (IIAC) and IIROC member firms. Deals in government bonds and T-bills, and some corporate bonds.

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