The Montreal Exchange (MX) and the Chicago Climate Exchange (CCX) announced today the establishment of the Montreal Climate Exchange (MCeX), the first environmental products market in Canada.

The new exchange combines the special expertise of the MX, Canada’s financial derivatives exchange, with that of CCX, which operates the only global greenhouse gas emissions trading system.

The two exchanges have finalized the preliminary agreement announced in Montreal on Dec. 7, 2005, during the landmark first meeting of the Parties to the United Nations Framework Convention on Climate Change.

“The MCeX will accelerate the development of a structured environmental market in Canada,” said Luc Bertrand, president and CEO of MX. “Since our first announcement, last December, we have received a multitude of requests for information. There is no doubt that people are interested. The Canadian industrial and financial communities are ready to welcome market-based solutions, and the MCeX will provide those solutions.”

Bertrand pointed out that the MCeX looks forward to emerging plans in Canada with regard to greenhouse gas emissions reduction, including the federal Government plan, expected in the fall. In this regard, he noted: “We are confident that our approach offers the wide flexibility and quality required to advance a variety of ideas and regulatory frameworks. Our partner, CCX, has already developed systems that operate in the disparate regulatory environments of the U.S. and Europe. We feel we are well prepared to help develop a uniquely Canadian approach to benefit Canada as a nation and the world generally.”

“Establishing the Montreal Climate Exchange will place Canada in a strong position to confront environmental challenges in a cost-effective market-based manner. MCeX is a significant advance in the global integration and expansion of environmental markets,” said Dr. Richard Sandor, Chairman and CEO of CCX. “This new Exchange will combine the environmental and financial expertise of Chicago and Montreal to offer an attractive suite of environmental financial products and services to the Canadian market.”

The mission of the MCeX is to offer price transparency, environmental integrity, low cost, wide access and reliability to the many sectors of the Canadian economy involved in air quality and climate change concerns.