TMX Group’s Montréal Exchange to launch futures contract on Canadian heavy crude oil

TMX Group’s Montréal Exchange to launch futures contract on Canadian heavy crude oil

14/06/10

Montréal Exchange Inc., a wholly-owned subsidiary of TMX Group and Canada’s national derivatives exchange, today announced that it will launch a futures contract on Canadian heavy crude oil. The new crude oil futures contract will be based on the price of Western Canadian Select (WCS), the benchmark for heavy crude oil in Canada. The contract will be listed for trading on the Montréal Exchange’s SOLA® electronic platform on June 18, 2010 with the symbol WCH.

Trades will be cleared by the Canadian Derivatives Clearing Corporation, which is wholly owned by Montréal Exchange. The contract will be cash-settled using the NGX WCS WTI Crude Oil Index reference price published by TMX Group’s Natural Gas Exchange (NGX). The NGX WCS WTI Crude Oil Index is the leading measurement of the price differential between heavy crude oil and light crude oil used by market participants in the physical market.

"We are proud to introduce a new futures contract on Canadian heavy crude oil that can be used by market participants to better manage the risk associated with the fluctuation of the price differential between heavy crude oil and light crude oil," said Alain Miquelon, President and Chief Executive Officer, Montréal Exchange. "The listing of a heavy crude oil futures contract represents an opportunity for the Montréal Exchange to position itself in an important segment of the crude oil market in Canada."

Crude oil plays a vital role in Canada’s economic development and heavy crude oil production is expected to double by 2020. Moreover, Canada is a major player globally ranking among the top ten crude oil producers and Canada is the largest exporter of crude oil to the United States.

"WCH is an integral part of our strategy to service the energy market and complement the trading, clearing and index services offered by NGX and Shorcan Energy in the physical market," said Tom Kloet, Chief Executive Officer, TMX Group. "Perhaps more importantly, this product demonstrates the key strategic linkages among the TMX Group business areas."

For more information about the contract, please visit www.m-x.ca.