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(April 23, 2008) TSX Group has announced that a business development delegation, led by senior vice-president Richard Nadeau, will set out to develop stronger business ties with China in mid-May.

The purpose of the visit is to continue to promote Canada as a strong player and destination marketplace in the international capital markets arena.

“We continue to see great opportunities in China,” said Nadeau. “These visits put us face to face with many potential issuers. We have more than 50 Chinese and Chinese-related companies listed on our exchanges, and trips like this will help us grow that list with quality companies that see the benefit of listing on Canadian markets. We will also take advantage of our visit in China to further expand our relationships with local professionals and senior representatives from the various Chinese government offices.”

The TSX Group will spend May 12 to May 19 in Nanjing, Beijing, and Shenzhen. Joining Nadeau will be Annie Lin Tao, manager business development, and who is exclusively dedicated to TSX’s Asian business development initiatives, along with sponsors and issuers with extensive experience doing business with China. These companies include: BMO Nesbitt Burns, Research Capital Corporation, CIBC World Markets, Lang Michener LLP, Blake, Cassels & Graydon LLP, Gowlings Lafleur Henderson LLP, Deloitte & Touche LLP, Ernst & Young LLP, and PricewaterhouseCoopers. The two issuers joining the group for this road show are Migao Corporation and SilverCorp.

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FBI warns of fraud at hedge funds

(April 23, 2008) An investigation into corporate fraud by the U.S. Federal Bureau of Investigation may reveal more unlawful actions on the part of investment banks and hedge funds, said FBI director Robert Mueller at the recent American Bar Association Litigation Section conference.

“We are targeting accounting fraud, insider trading and deceptive sales practices,” said Mueller. “These investigations may well lead to other instances of fraud, from investment banks and private equity firms to hedge funds.”

Mueller said the number of corporate fraud cases investigated by the FBI has increased by more than 80% since 2003, with over 490 corporate and securities fraud convictions made in 2007.

“Thirty-three insider trading indictments were returned against employees of companies such as Goldman Sachs, Morgan Stanley, Credit Suisse and UBS Securities,” he said. “Shareholders rely on the board of directors to serve as the corporate watchdog. But often, we see conflicts of interest in the corporate suites.”

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TSX finalizes migration schedule of symbols to TSX Quantum

(April 23, 2008) TSX Group has finalized the schedule for the migration of Toronto Stock Exchange symbols to TSX Quantum. Thirty-six symbols currently trade on the new engine, and the remainder will be added by the end of May. The migration will begin on May 9, 2008.

Symbols will be migrated alphabetically, with those starting with the letters A through M being scheduled to be completed May 12. The remainder will be migrated May 25. June 2 and 6 have been designated as contingency dates.

TSX Quantum was designed in-house, in contrast to the technology employed by competing marketplaces.

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Economic data paints grey picture

(April 23, 2008) Consumer spending fell for the first time in five months, prompting retail sales to drop in February, Statistics Canada reported today.

Based on StatsCan data, retail sales fell 0.7% in February to an estimated $35.5 billion. None of the eight retail trade sectors tracked by the federal government agency showed higher sales during the month, while the automotive and clothing sectors posted reductions of 1% or more.

Economists had been looking for an overall retail sales increase of 0.1%. Their projection for sales excluding the auto sector was for an increase of 0.4%.

By province, Ontario posted the most significant reduction in sales, where consumer activity dropped by 1.6% in February.

“A series of winter storms and the new Family Day holiday may have affected Ontario retail sales in February,” Statistics Canada said.

In a separate release, Export Development Canada (EDC) reported that Canadian exporters will face a challenging year in 2008.

According to EDC’s Global Export Forecast, Canadian exports are forecast to decline by 2% in 2008 before posting slight growth of 2% in 2009. Nationally, Canadian economic growth is forecast to decline to 1% in 2008 with a slight upturn to 2.3% in 2009.

Internationally, EDC is forecasting a 3.8% growth rate in 2008 and 2009. The hardest hit in Canada is Ontario. The province’s exports are expected to decline 7% in 2008 and rise a lukewarm 1% in 2009, according to the EDC.

“Ontario’s exports will be battered this year by the high Canadian dollar and eroding U.S. sales,” said Peter Hall, vice-president of economics and deputy chief economist. “Ontario is exposed to weakness in the auto sector and sliding demand for industrial goods. Both sectors are also impacted by the soaring currency.”

(04/23/08)