The Caisse de dépôt et placement du Québec responds to the proposal to merge the Montréal Exchange with the Toronto Stock Exchange

The Caisse de dépôt et placement du Québec has taken note of the proposal, made public today, to merge the Montréal Exchange with the Toronto Stock Exchange. The Caisse considers the proposed merger interesting and supports the proposal for a public hearing on the project, notably to ensure that the financial and strategic aspects of the proposed transaction are reviewed, as well as the governance rules that will apply. The Caisse is a shareholder in the Montréal Exchange with a stake of almost 8%.

“As a shareholder, we want to know whether the proposed merger is ultimately viable, given the emergence of many competitive platforms in the equity markets and the increasing share represented by Canadian companies interlisted on U.S. exchanges. This is especially important since the market for standardized derivatives is quite likely to grow significantly in the years to come,” stated Henri-Paul Rousseau, President and Chief Executive Officer of the Caisse. The institution would like to know what impact these changes will have on the traditional operations carried out by the Toronto Stock Exchange and the commercial value of these operations in relation to those of the Montréal Exchange.

“Moreover, we have questions about the governance principles and rules that will apply to the new entity,” Mr. Rousseau continued. “What role will Québec’s representatives have on the board of directors and the executive committee? Where will the decision-making centre be located? It is essential that these questions be answered before we take a definitive stand on the proposal.”

Lastly, the Caisse would like to know what the proponents’ intentions are regarding development of operations in Montréal. “Over the years, the Montréal Exchange has developed leading-edge derivatives expertise. We would like to know what the Toronto Stock Exchange’s intentions are in this regard before we take our analysis further. A public debate is needed," Mr. Rousseau concluded.

About the Caisse de dépôt et placement du Québec
The Caisse de dépôt et placement du Québec is a financial institution that manages funds primarily for public and private pension and insurance plans. As at December 31, 2006, it held CA$143.5 billion of net assets. One of the leading institutional fund managers in Canada, the Caisse invests in the main financial markets as well as in private equity and real estate. For more information: www.cdpq.com.