Canadian Trading and Quotation System Inc. (CNQ) said today that it will be launching an alternative market, expected in early 2006, for trading in securities listed on the TSX.

The new market, which will be separate from CNQ’s own listed market of small-cap companies, will provide a low cost alternative to trading on the TSX. It will be the first alternative market in Canada to offer a visible auction market accessible by any Canadian investment dealer.

“We will be offering not only lower cost but also greater speed of execution, something that is increasingly demanded by the trading community”, said Robert Cook, CNQ’s president and CEO, in a release.

“The recent upswing in algorithmic trading is a sector of the market that is under served in today’s market. Our trading platform will be designed to accommodate the demands of that sector of the market, as well as the large volumes that go through the TSX.”

He added that all market participants will benefit from CNQ’s entry as a competitor to the TSX in Canada. Cook explained that the alternative market will operate in the same manner as Electronic Communications Networks (ECNs) in the United States that have traded Nasdaq and New York Stock Exchange-listed stocks for several years.

An alternative market contributes to overall market efficiency by the creation of an additional liquidity pool with opportunities for instantaneous arbitrage between markets.

The Ontario Securities Commission has published CNQ’s application with a request for comments for a period of 30 days following which CNQ will seek final approval to operate the alternative market.

A date will be set for launch of the market following OSC approval. CNQ’s alternative market application is also posted on www.cnq.ca under CNQ Notices.