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(August 13, 2007) With the sub-prime woes throwing the financial world into turmoil, CIBC has revealed that it has about a $1 billion exposure to the embattled market.

In an announcement coming two and a half weeks before the bank reveals its quarterly results, CIBC says its total exposure to the American mortgage market is about $1.7 billion before write-downs. That translates to $190 million after tax.

Last month there were rumours that CIBC’s exposure to the sub-prime market totalled about $2.8 billion, but the bank responded that its exposure was “well below” the rumoured amount.

CIBC says that less than 60% of its exposure to the U.S. residential mortgage market is related to sub-prime, while the rest is mid-prime and higher-grade assets.

The bank also said its third quarter projection included “good revenue, expense and loan loss performance in most business groups, as well as higher than normal gains on securities and credit derivative hedges, and reversals of litigation and income tax accruals.”

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BluMont buying Hirsh funds

(August 13, 2007) BluMont Capital Corporation has reached an agreement to purchase the administrative management contracts of three funds from Burgeonvest Securities and Halcyon Fund Management.

The three funds are the Halcyon Hirsch Opportunistic Canadian Fund, the Halcyon Hirsch Opportunistic Tactical Allocation Fund and the Halcyon Canadian Demographic Fund. The transaction is expected to close in October, pending shareholder and regulatory approvals.

BluMont says it plans to merge the Halcyon Canadian Demographic Fund into the Halcyon Hirsch Opportunistic Canadian Fund.

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Sprott launching small-cap fund

(August 13, 2007) Sprott Asset Management has announced the launch of the Sprott Small Cap Equity Fund, which will be available August 23, 2007.

The fund will require a minimum initial investment of $5,000 and, as the name suggests, will invest “primarily in small capitalization equity and equity-related securities listed in Canada,” although the mandate allows for some exposure to global small-cap stocks.

The fund will use a bottom-up approach and will blend value and growth management styles.

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Atkinson steps down from RS

(August 13, 2007) Market Regulation Services has announced the resignation of its president and CEO, Tom Atkinson. He will be succeeded by Maureen Jensen, effective Friday, August 10.

Jenson was most recently RS’s vice-president of market regulation, eastern region.

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TSX announces fee cuts

(August 13, 2007) The TSX has announced a new trading fee schedule, which will accompany the launch of its new platform, expected in November.

The new fee structure should reduce the cost of limit order trades by up to 40% on a “round-trip” basis. Fees for trading on the TSX Venture Exchange will be more in line with those of the TSX senior market.

“We are revising trading fees as part of our strategy to enhance TSX Group’s competitive position as the central point of liquidity for Canadian equities,” said Rik Parkhill, president, TSX Markets. “We want to ensure global participants and active traders are incented to take full advantage of TSX Quantum’s increased capacity, throughput and response times.”

The lower fees are expected to boost liquidity on both the TSX and the TSX-V. Also, TSX Group’s trading and related revenue could be trimmed by up to $10 million. Complete details of the new fee structure are available on the TSX website.

(08/13/07)