TSX Group Inc. Reports Results for Third Quarter 2007



    
    -   Revenue of $106.1 million for Q3/07, up 31% over Q3/06
    -   Volume traded on Toronto Stock Exchange and TSX Venture Exchange up
        43% over Q3/06
    -   Record diluted earnings per share of 62 cents for Q3/07, versus
        48 cents in Q3/06
    -   Q3/07 net income of $42.7 million, compared with $33.2 million in
        Q3/06
    -   Cash flow from operations of $55.1 million in Q3/07, an increase of
        45% from Q3/06
    -   Repurchased over 1.7 million common shares at a cost of $73.8 million
        under NCIB during Q3/07
    -   TSX Group increases its guarantee of NGX clearing backstop fund to
        US $100 million from $30 million to accommodate anticipated growth in
        activity
    -   Announces changes to listing fees structure for 2008
    

    TORONTO, Oct. 31 /CNW/ - TSX Group Inc. (TSX:X) announced results for the
third quarter ended September 30, 2007:

    
    (in millions of dollars, except per share amounts)

                                     Q3/07      Q3/06   $ increase % increase

    Revenue                        $  106.1   $   81.2   $   24.9        31%
    Expenses                       $   44.4   $   37.7   $    6.7        18%
    Net income                     $   42.7   $   33.2   $    9.5        29%
    Earnings per share:
      Basic                        $   0.63   $   0.49   $   0.14        29%
      Diluted                      $   0.62   $   0.48   $   0.14        29%
    Cash Flows from Operating
     Activities                    $   55.1   $   38.0   $   17.1        45%
    

    Richard Nesbitt, Chief Executive Officer of TSX Group, said "We are
pleased to again report strong financial results with record EPS of 62 cents
for the third quarter. We also made great strides with our initiatives in the
third quarter. We are extremely excited about our new trading and technology
platform TSX Quantum, which will begin rollout this quarter. Preparations
continue in advance of the anticipated March 2009 launch of our new Canadian
derivatives market DEX, our joint initiative with International Securities
Exchange. This past quarter a contract was signed with OMX to deliver and
support a new trading system for DEX. In addition, TSX entered into an
agreement with Standard & Poor's to secure the exclusive use of S&P/TSX(+)
equity indices in connection with options, futures and options on futures
beginning in 2009. In our energy business, the NGX arrangement with
IntercontinentalExchange is scheduled to launch this December. We were also
pleased to announce that we have purchased the option to acquire all of the
shares of NetThruPut Inc., a leading Canadian electronic trading platform and
clearing facility for crude oil after March 15, 2009."
    Commenting specifically on TSX Group's financial results, Michael
Ptasznik, Chief Financial Officer, said "In the third quarter of 2007, we saw
strong revenue growth in issuer services, trading and market data over the
corresponding period in 2006. The increases came both from underlying market
and sales activity as well as from the recent acquisitions in the areas of
energy, fixed income and investor relations services."

    
    -------------------
    (+) "S&P", as part of the composite mark of S&P/TSX refers to a trademark
        of The McGraw-Hill Companies, Inc. and is used under license.
    

    Quarter Ended September 30, 2007 Compared with Quarter Ended
    September 30, 2006

    Revenue

    Revenue was $106.1 million for Q3/07, up $24.9 million, or 31% as
compared with $81.2 million for Q3/06 primarily reflecting increased issuer
services, trading and related and market data revenue, including $9.4 million
from Shorcan Brokers Limited ("Shorcan"), Oxen Inc. ("Oxen"), PC-Bond(R)
(acquired in Q4/06) and The Equicom Group Inc. ("Equicom"), acquired in Q2/07.

    Issuer Services Revenue (previously Listing Revenue)

    The following is a summary of issuer services revenue reported and issuer
services fees billed(*) (reconciled below in this section) in Q3/07 and Q3/06.

    
    (in millions of dollars)

                                         Reported
                                                             $          %
                                     Q3/07      Q3/06    increase   increase

    Initial listing fees           $    3.5   $    3.0   $    0.5        17%
    Additional listing fees        $   11.4   $    9.3   $    2.1        23%
    Sustaining listing fees(xx)    $   16.8   $   15.3   $    1.5        10%
    Other issuer services          $    3.1          -   $    3.1          -
                                   ---------  ---------  ---------
    Total issuer services fees     $   34.8   $   27.6   $    7.2        26%
                                   ---------  ---------  ---------


                                         Billed(*)
                                                             $          %
                                     Q3/07      Q3/06    increase   increase

    Initial listing fees           $    7.2   $    6.8   $    0.4         6%
    Additional listing fees        $   23.2   $   18.7   $    4.5        24%
    Sustaining listing fees(xx)    $   16.8   $   15.3   $    1.5        10%
    Other issuer services          $    3.1          -   $    3.1          -
                                   ---------  ---------  ---------
    Total issuer services fees     $   50.3   $   40.8   $    9.5        23%
                                   ---------  ---------  ---------

    -------------------
    (*)  See discussion under the heading Non-GAAP Financial Measures.
    (xx) Sustaining listing fees billed, as shown in this table, represents
         the amount recognized for accounting purposes during the quarter.
         Sustaining listing fees are billed during the first quarter of the
         year, recorded as deferred revenue and amortized over the year on a
         straight-line basis.
    

    Initial and additional listing fees are non-refundable fees paid by
listed issuers for the listing or reserving of securities. In the case of
Toronto Stock Exchange, effective April 2007, customers are billed for initial
and additional listing fees. Prior to this date, these fees were paid upon the
listing or reserving of securities which is still the practice on TSX Venture
Exchange. With the adoption of a new system, there is now a lag between when
securities are issued or reserved and when these listing fees are paid for
Toronto Stock Exchange listed issuers. These fees are recorded as "deferred
revenue - initial and additional listing fees" and recognized on a
straight-line basis over an estimated service period of ten years. The
following is a reconciliation of initial and additional listing fees billed(*)
to initial and additional listing fees reported:

    
    Initial Listing Fees (in millions of dollars)          Q3/07      Q3/06

    Initial listing fees billed(*)                       $    7.2   $    6.8
    Initial listing fees billed(*) and deferred
     to future periods                                  ($    7.1) ($    6.7)
    Recognition of initial listing fees billed(*)
     and previously included in deferred revenue         $    3.4   $    2.9
                                                        ---------- ----------
    Initial listing fees revenue reported                $    3.5   $    3.0
                                                        ---------- ----------


    Additional Listing Fees (in millions of dollars)       Q3/07      Q3/06

    Additional listing fees billed(*)                    $   23.2   $   18.7
    Additional listing fees billed(*) and deferred
     to future periods                                  ($   22.8) ($   18.3)
    Recognition of additional listing fees billed(*)
     and previously included in deferred revenue         $   11.0   $    8.9
                                                        ---------- ----------
    Additional listing fees revenue reported             $   11.4   $    9.3
                                                        ---------- ----------


    -   Initial and additional listing fees reported increased due to capital
        market activity and listing fees increases during the period from
        October 1, 1997 to September 30, 2007 compared with the period from
        October 1, 1996 to September 30, 2006. Initial and additional listing
        fees billed(*) in Q3/07, as compared with Q3/06, reflect changes in
        the number and value of securities listed and reserved in the
        respective quarters, as well as changes to the pricing model for each
        equity exchange that were effective January 1, 2007.

    -   The increase in Sustaining listing fees reflected the overall higher
        market capitalization of listed issuers at the end of 2006 compared
        with the end of 2005. Issuers listed on Toronto Stock Exchange and
        TSX Venture Exchange pay annual fees primarily based on their market
        capitalization at the end of the prior calendar year, subject to
        minimum and maximum fees. In addition, revenue from sustaining
        listing fees increased due to fee increases on each equity exchange
        that were effective January 1, 2007.

    -   Other issuer services includes revenue from Equicom(TM), acquired in
        June 2007. Equicom provides investor relations and related corporate
        communications services to public companies in Canada.

    -------------------
    (*) See discussion under the heading Non-GAAP Financial Measures
    

    Changes to Listing Fees for 2008(1)

    There will be changes to the fee structure for issuers listed on Toronto
Stock Exchange and TSX Venture Exchange effective January 1, 2008. This
decision followed a review of listing fees on other major global exchanges.
Based on recent market activity, it is anticipated that total issuer services
revenue reported would have increased by about one to three percent and total
issuer services fees billed(*) would have increased by about six to eight
percent on an annual basis as a result of these changes. For Toronto Stock
Exchange listed issuers, the changes include adjustments to the variable rates
for initial and additional listing fees and increases to the maximum fee for
security-based compensation arrangements. For TSX Venture Exchange issuers,
the changes include increases to the minimum and maximum sustaining and
additional listing fees and to the initial Capital Pool Company listing fee.
Details of changes to the Toronto Stock Exchange fee structure will be
available on tsx.com. TSX Venture Exchange listing fees changes are subject to
regulatory approval and details of the approved changes will be available on
tsx.com following completion of the approval process.

    
    Trading and Related Revenue

    (in millions of dollars)
                                     Q3/07      Q3/06   $ increase % increase
    Capital Markets:
    -  Toronto Stock Exchange      $   25.3   $   19.3   $    6.0        31%
    -  TSX Venture Exchange        $    6.8   $    4.3   $    2.5        58%
    -  Shorcan                     $    3.5          -   $    3.5          -
                                   ---------  ---------  ---------
    Capital Markets revenue        $   35.6   $   23.6   $   12.0        51%
    Energy Markets revenue         $    5.9   $    4.6   $    1.3        28%
                                   ---------  ---------  ---------
    Total trading and related
     revenue                       $   41.5   $   28.2   $   13.3        47%
                                   ---------  ---------  ---------

    -------------------
    (1) The "Changes to Listing Fees for 2008" section above contains certain
        forward-looking statements. Please refer to "Forward-Looking
        Statements, Risks and Uncertainties" for a discussion of risks and
        uncertainties related to such statements.
    (*) See discussion under the heading Non-GAAP Financial Measures.


    Capital Markets

    -   The volume of securities traded in Q3/07 on Toronto Stock Exchange
        increased by 33% over Q3/06 (22.8 billion securities in Q3/07 versus
        17.1 billion securities in Q3/06) and the volume of securities traded
        in Q3/07 on TSX Venture Exchange increased by 68% over Q3/06
        (11.1 billion securities in Q3/07 versus 6.6 billion securities in
        Q3/06). The total volume of securities traded in Q3/07 on both
        exchanges increased by 43% over Q3/06 (33.9 billion securities in
        Q3/07 versus 23.7 billion securities in Q3/06).

    -   The increase was partly attributable to the inclusion of revenue from
        Shorcan, acquired in December 2006.

    Energy Markets

    -   The volumes traded or cleared in natural gas and electricity
        contracts on Natural Gas Exchange ("NGX"), excluding Oxen, in Q3/07
        increased by 22% over Q3/06 (2.8 million terajoules in Q3/07 versus
        2.3 million terajoules in Q3/06).

    -   The increase was also attributable to the inclusion of $0.4 million
        in revenue from Oxen, which was acquired in October 2006.
    

    Trading Fee Revisions - Toronto Stock Exchange and TSX Venture Exchange
    announced on August 13, 2007(2)

    In preparation for the TSX Quantum Revolution(TM), scheduled for initial
launch in the fourth quarter of 2007 and continuing throughout 2008, TSX Group
announced the specific changes to the trading fee structures on both Toronto
Stock Exchange and TSX Venture Exchange on August 13, 2007, taking effect on
November 1, 2007.
    The fee changes are targeted at taking advantage of this new technology
by attracting more volume to the Toronto Stock Exchange central limit order
book and incenting liquidity from global participants. In addition, the
pricing model for TSX Venture Exchange will be aligned more closely with that
of Toronto Stock Exchange. These changes are the next phase in the program we
launched last year in moving to a volume-based trading fee model and are
consistent with our commitment to reduce the overall cost of trading of
Canadian equities.
    Given that many of the changes will be structured to improve liquidity,
it is expected that the impact of the proposed changes will be to improve TSX
Group's competitive position in North America. Based on historical trading
activity, patterns, and product mix, changes to the trading fee structure
could reduce trading and related revenue by approximately $7 to $10 million on
an annual basis if offsetting benefits, including increased volumes, are not
realized. However, actual trading revenue will depend on future trading
activity, patterns and product mix.

    
    -------------------
    (2) The "Trading Fee Revisions - Toronto Stock Exchange and TSX Venture
        Exchange announced on August 13, 2007" section above contains certain
        forward-looking statements. Please refer to "Forward-Looking
        Statements, Risks and Uncertainties" for a discussion of risks and
        uncertainties related to such statements.


    Market Data Revenue

    (in millions of dollars)
                                     Q3/07      Q3/06   $ increase % increase

                                   $   27.5   $   23.0   $    4.5        20%

    -   Market data revenue increased due to a 15% increase in the number of
        professional and equivalent real-time data subscriptions (over
        155,000 at the end of Q3/07 versus over 134,000 at the end of Q3/06).
        This increase reflects higher sales to U.S. customers, additional
        subscriptions for TSX Venture Exchange data and increased sales of
        premium products.

    -   The increase was also due to revenue from recent initiatives
        including PC-Bond, acquired in October 2006 and revenue from on-line
        delivery of data to retail investors and direct to client low latency
        data feeds for algorithmic traders.

    -   The increase was also attributable to fee changes that were effective
        January 1, 2007.

    -   The increase was partially reduced by the negative impact of the
        appreciation of the Canadian dollar against the U.S. dollar since
        Q3/06.

    -   Revenue recoveries related to under-reported usage of real-time
        quotes were $3.8 million higher in Q3/06 compared with Q3/07.
    

    Changes to Market Data Pricing for 2008(3)

    There will be changes to TSX Datalinx prices effective January 1, 2008.
This decision followed a review of market data fees on other major global
exchanges, over 100% growth in our quote message rates, and the significant
appreciation of the Canadian dollar against the US dollar over the past year.
Based on recent market activity, it is anticipated that total market data
revenue would have increased by about four to six percent on an annual basis.
It is anticipated that market data sales in Canadian dollars would have
increased by about one to two percent and that market data sales in U.S.
dollars would have increased by about eleven to twelve percent.

    
    -------------------
    (3) The "Changes to Market Data Pricing for 2008" section above contains
        certain forward-looking statements. Please refer to "Forward-Looking
        Statements, Risks and Uncertainties" for a discussion of risks and
        uncertainties related to such statements.
    


    Expenses

    Expenses were $44.4 million in Q3/07, an increase of $6.7 million, or
18%, as compared with $37.7 million in Q3/06, including $7.8 million relating
to Shorcan, Oxen, PC-Bond (acquired in Q4/06) and Equicom (acquired in Q2/07),
partially offset by the impact of capitalizing $1.4 million of Compensation
and Benefits costs and $0.2 million in General and Administration costs
related to the internal development of the TSX Quantum(TM) trading engine.

    Compensation and Benefits

    
    (in millions of dollars)
                                     Q3/07      Q3/06   $ increase % increase

                                   $   23.5   $   18.9   $    4.6        24%

    -   Compensation and benefits costs increased by $4.5 million due to the
        previously mentioned acquisitions made in Q4/06 and Q2/07. These
        acquisitions resulted in an increase of 108 employees. In addition,
        in Q2/07, 13 employees that perform investigative research,
        previously employed by Market Regulation Services Inc., were
        transferred to TSX Inc. The insourcing of the investigative research
        function has resulted in a reduction of General and administration
        costs. These increases were partially offset by a net reduction of 13
        employees in our core businesses. There were 610 employees at
        September 30, 2007 versus 502 at September 30, 2006.

    -   There were higher expenses associated with annual salary increases
        and pension costs.

    -   The increase in Q3/07 compared with Q3/06 was partially offset by the
        impact of capitalizing $1.4 million of internal development costs
        related to the TSX Quantum(TM) trading engine.


    Information and Trading Systems

    (in millions of dollars)
                                     Q3/07     Q3/06    $ increase % increase

                                   $    6.8   $    6.3   $    0.5         8%

    -   Information and trading systems costs increased by $0.7 million due
        to the previously mentioned acquisitions made in Q4/06 and Q2/07.

    -   The increase was also attributable to costs associated with providing
        TSXconnect(R), an investor relations product that delivers market
        data, analytic and competitive information to our listed issuers.

    -   The increases were offset by lower initiative spending in Q3/07.
        Information and trading systems costs in Q3/06 included expenses
        associated with the TSXPress(TM) initiative, which was completed in
        1H/07.


    General and Administration

    (in millions of dollars)
                                     Q3/07      Q3/06   $ increase % increase

                                   $   10.0   $    9.2   $    0.8         9%

    -   General and administration costs increased by $1.8 million due to
        expenses relating to the previously mentioned acquisitions made in
        Q4/06 and Q2/07.

    -   The increase was somewhat offset by lower directors' fees and sales
        commissions as well as lower costs resulting from insourcing the
        investigative research function. In addition, $0.2 million of
        internal development costs related to the TSX Quantum trading engine
        were capitalized.


    Amortization

    (in millions of dollars)
                                     Q3/07      Q3/06   $ increase % increase

                                   $    4.1   $    3.2   $    0.9        28%

    -   Amortization costs increased reflecting higher amortization of
        $0.8 million associated with the acquisitions made in Q4/06 and
        Q2/07.


    Income from Investment in Affiliate

    (in millions of dollars)
                                     Q3/07      Q3/06   $ increase

                                   $    0.1   $    0.1          -

    -   Income from investment in affiliate represents our share of
        CanDeal.ca Inc.'s ("CanDeal") income for Q3/07 based on our 47%
        interest in CanDeal.


    Investment Income

    (in millions of dollars)
                                                             $          %
                                     Q3/07      Q3/06   (decrease) (decrease)

                                   $    4.7   $    5.1  ($    0.4)       (8%)

    -   Investment income decreased due to lower returns on short-term bond
        and mortgage investments during Q3/07 versus Q3/06, somewhat offset
        by higher returns on money market investments.

    -   During Q3/07 funds that would have otherwise been available for
        investment were used to repurchase 1,710,262 common shares under a
        normal course issuer bid ("NCIB") at a cost of $73.8 million.


    Income Taxes

    (in millions of dollars)
                                                              Effective
                                                             tax rate (%)
                                     Q3/07      Q3/06      Q3/07      Q3/06

                                   $   23.9   $   15.5        36%        32%

    -   The effective tax rate increased from approximately 32% for Q3/06 to
        approximately 36% for Q3/07, which is our effective statutory rate.

    -   The effective tax rate for Q3/06 was lower partially due to tax
        adjustments related to short-term bond and mortgage fund investments.


    Nine Months Ended September 30, 2007 Compared with Nine Months Ended
    September 30, 2006

                                    Nine months ended
                                     Sept.      Sept.
                                     30/07      30/06   $ increase % increase

    Revenue                        $  313.5   $  261.8   $   51.7        20%
    Expenses                       $  134.4   $  109.0   $   25.4        23%
    Net income                     $  118.3   $   96.4   $   21.9        23%
    Earnings per share:
      Basic                        $   1.73   $   1.41   $   0.32        23%
      Diluted                      $   1.72   $   1.40   $   0.32        23%
    Cash Flows from Operating
     Activities                    $  168.5   $  151.4   $   17.1        11%
    

    Revenue

    Revenue was $313.5 million for the first nine months of 2007, up
$51.7 million, or 20% compared with $261.8 million for the first nine months
of 2006, reflecting increased market data, issuer services and trading and
related revenue including $22.2 million of revenue from Shorcan, Oxen, PC-Bond
(acquired in Q4/06) and Equicom (acquired in Q2/07).

    Issuer Services Revenue (previously Listing Revenue)

    The following is a summary of issuer services revenue reported and issuer
services fees billed(*) (reconciled below in this section) in the first nine
months of 2007 and the first nine months of 2006.

    
    (in millions of dollars)

                                        Reported

                                    Nine months ended
                                     Sept.      Sept.
                                     30/07      30/06   $ increase % increase

    Initial listing fees           $   10.1   $    8.4   $    1.7        20%
    Additional listing fees        $   32.2   $   26.3   $    5.9        22%
    Sustaining listing fees(xx)    $   50.7   $   45.5   $    5.2        11%
    Other issuer services          $    4.2          -   $    4.2          -
                                   ---------  ---------  ---------
    Total issuer services fees     $   97.2   $   80.2   $   17.0        21%
                                   ---------  ---------  ---------


                                        Billed(*)

                                    Nine months ended
                                     Sept.      Sept.
                                     30/07      30/06   $ increase % increase

    Initial listing fees           $   22.3   $   21.7   $    0.6         3%
    Additional listing fees        $   81.7   $   64.1   $   17.6        27%
    Sustaining listing fees(xx)    $   50.7   $   45.5   $    5.2        11%
    Other issuer services          $    4.2          -   $    4.2          -
                                   ---------  ---------  ---------
    Total issuer services fees     $  158.9   $  131.3   $   27.6        21%
                                   ---------  ---------  ---------


    -------------------
    (*)  See discussion under the heading Non-GAAP Financial Measures.
    (xx) Sustaining listing fees billed, as shown in this table, represents
         the amount recognized for accounting purposes during the period.
         Sustaining listing fees are billed during the first quarter of the
         year, recorded as deferred revenue and amortized over the year on a
         straight line basis.
    


    Initial and additional listing fees are non-refundable fees paid by
listed issuers for the listing or reserving of securities. In the case of
Toronto Stock Exchange, effective April 2007, customers are billed for initial
and additional listing fees. Prior to this date, these fees were paid upon the
listing or reserving of securities which is still the practice on TSX Venture
Exchange. With the adoption of a new system, there is now a lag between when
securities are issued or reserved and when these listing fees are paid for
Toronto Stock Exchange listed issuers. These fees are recorded as "deferred
revenue - initial and additional listing fees" and recognized on a straight
line basis over an estimated service period of ten years. The following is a
reconciliation of initial and additional listing fees billed(*) to initial and
additional listing fees reported:

    
                                                          Nine months ended
                                                           Sept.      Sept.
    Initial Listing Fees (in millions of dollars)          30/07      30/06

    Initial listing fees billed(*)                       $   22.3   $   21.7
    Initial listing fees billed(*) and deferred
    to future periods                                   ($   22.0) ($   21.4)
    Recognition of initial listing fees billed(*) and
     previously included in deferred revenue             $    9.8   $    8.1
                                                        ---------- ----------
    Initial listing fees revenue reported                $   10.1   $    8.4
                                                        ---------- ----------

                                                          Nine months ended
                                                           Sept.      Sept.
    Additional Listing Fees (in millions of dollars)       30/07      30/06

    Additional listing fees billed(*)                    $   81.7   $   64.1
    Additional listing fees billed(*) and deferred
     to future periods                                  ($   80.4) ($   63.1)
    Recognition of additional listing fees billed(*)
     and previously included in deferred revenue         $   30.9   $   25.3
                                                        ---------- ----------
    Additional listing fees revenue reported             $   32.2   $   26.3
                                                        ---------- ----------


    -   Initial and additional listing fees reported increased due to capital
        market activity and listing fees increases during the period from
        April 1, 1997 to September 30, 2007 compared with the period from
        April 1, 1996 to September 30, 2006. Initial and additional listing
        fees billed(*) in the first nine months of 2007, as compared with the
        first nine months of 2006, reflect changes in the number and value of
        securities listed and reserved in the respective periods, as well as
        changes to the pricing model for each equity exchange that were
        effective January 1, 2007.

    -   The increase in Sustaining listing fees reflected the overall higher
        market capitalization of listed issuers at the end of 2006 compared
        with the end of 2005. Issuers listed on Toronto Stock Exchange and
        TSX Venture Exchange pay annual fees primarily based on their market
        capitalization at the end of the prior calendar year, subject to
        minimum and maximum fees. In addition, revenue from sustaining
        listing fees increased due to fee increases on each equity exchange
        that were effective January 1, 2007.

    -   Other issuer services includes revenue from the acquisition of
        Equicom, effective June 1, 2007.

    -------------------
    (*) See discussion under the heading Non-GAAP Financial Measures.


    Trading and Related Revenue

    (in millions of dollars)
                                    Nine months ended
                                     Sept.      Sept.
                                     30/07      30/06   $ increase % increase
    Capital Markets:
    -  Toronto Stock Exchange      $   77.4   $   74.9   $    2.5         3%
    -  TSX Venture Exchange        $   23.4   $   22.0   $    1.4         6%
    -  Shorcan                     $   10.2          -   $   10.2          -
                                   ---------  ---------  ---------
    Capital Markets revenue        $  111.0   $   96.9   $   14.1        15%
    Energy Markets revenue         $   15.5   $   13.9   $    1.6        12%
                                   ---------  ---------  ---------
    Total trading and related
     revenue                       $  126.5   $  110.8   $   15.7        14%
                                   ---------  ---------  ---------


    Capital Markets

    -   The increase was primarily attributable to the inclusion of revenue
        of $10.2 million from Shorcan.

    -   The volume of securities traded in the first nine months of 2007 on
        Toronto Stock Exchange increased by 19% over the first nine months of
        2006 (71.4 billion securities in the first nine months of 2007 versus
        60.2 billion securities in the first nine months of 2006) and the
        volume of securities traded in first nine months of 2007 on TSX
        Venture Exchange increased by 35% over the first nine months of 2006
        (38.0 billion securities in the first nine months of 2007 versus
        28.2 billion securities in the first nine months of 2006). The total
        volume of securities traded in the first nine months of 2007 on both
        exchanges increased by 24% over the first nine months of 2006
        (109.4 billion securities in the first nine months of 2007 versus
        88.4 billion securities in the first nine months of 2006). The impact
        from the growth in the volume of securities traded was partially
        offset by the impact from converting to a volume-based fee structure
        from a value-based fee model effective July 1, 2006.


    Energy Markets

    -   The increase was due to the inclusion of revenue of $1.2 million from
        Oxen.

    -   The volumes traded or cleared in natural gas and electricity
        contracts on NGX, excluding Oxen, in the first nine months of 2007
        increased by 8% over the first nine months of 2006 (8.1 million
        terajoules in the first nine months of 2007 versus 7.5 million
        terajoules in the first nine months of 2006). In the first nine
        months of 2007, NGX deferred more revenue related to longer-term
        contracts than in the first nine months of 2006, which somewhat
        offset the increase in revenue.


    Market Data Revenue

    (in millions of dollars)
                                    Nine months ended
                                     Sept.      Sept.
                                     30/07      30/06   $ increase % increase

                                   $   81.9   $   63.0   $   18.9        30%

    -   Market data revenue increased due to a 15% increase in the number of
        professional and equivalent real-time data subscriptions (over
        155,000 at September 30, 2007 versus over 134,000 at September 30,
        2006). This increase reflects higher sales to U.S. customers,
        additional subscriptions for TSX Venture Exchange data and increased
        sales of premium products.

    -   The increase was also due to the inclusion of revenue from PC-Bond,
        acquired in October 2006, and revenue from on-line delivery of data
        to retail investors and direct to client low latency data feeds for
        algorithmic traders.

    -   The increase was also attributable to fee changes that were effective
        January 1, 2007.

    -   The increase was partially reduced by the negative impact of the
        appreciation of the Canadian dollar against the U.S. dollar since
        Q3/06.

    -   Revenue recoveries related to under-reported usage of real-time
        quotes were $3.1 million higher in the first nine months of 2006
        compared with the first nine months of 2007.


    Expenses

    Expenses were $134.4 million in the first nine months of 2007, an increase
of $25.4 million, or 23%, compared with $109.0 million in the first nine
months of 2006, including $18.8 million relating to Shorcan, Oxen, PC-Bond
(acquired in Q4/06) and Equicom (acquired in Q2/07).


    Compensation and Benefits

    (in millions of dollars)
                                    Nine months ended
                                     Sept.      Sept.
                                     30/07      30/06   $ increase % increase

                                   $   71.6   $   57.7   $   13.9        24%

    -   Compensation and benefits costs increased by $10.0 million due to the
        previously mentioned acquisitions in Q4/06 and Q2/07. These
        acquisitions resulted in an increase of 108 employees. In addition,
        in Q2/07, 13 employees that perform investigative research,
        previously employed by Market Regulation Services Inc., were
        transferred to TSX Inc. The insourcing of the investigative research
        function has resulted in a reduction of General and administration
        costs. These increases were partially offset by a net reduction of 13
        employees in our core businesses. There were 610 employees at
        September 30, 2007 versus 502 at September 30, 2006.

    -   There were higher expenses associated with annual salary increases,
        higher overall performance incentive accruals and pension costs. In
        addition to the costs associated with the acquisitions (outlined in
        the previous paragraph) in Q4/06 and Q2/07, there was also an
        increase of $2.2 million in organizational transition costs in our
        core businesses compared with the same period last year.

    -   The increase in the first nine months of 2007 compared with the first
        nine months of 2006 was partially offset by the impact of
        capitalizing $3.2 million of internal development costs related to
        the TSX Quantum trading engine.


    Information and Trading Systems

    (in millions of dollars)
                                    Nine months ended
                                     Sept.      Sept.
                                     30/07      30/06   $ increase % increase

                                   $   19.9   $   16.3   $    3.6        22%

    -   Information and trading systems costs increased by $1.9 million due
        to the previously mentioned acquisitions made in Q4/06 and Q2/07.

    -   The increase was also due to higher expenses associated with
        providing TSXconnect, an investor relations product that delivers
        market data, analytic and competitive information, to our listed
        issuers.


    General and Administration

    (in millions of dollars)
                                    Nine months ended
                                     Sept.      Sept.
                                     30/07      30/06   $ increase % increase

                                   $   31.3   $   25.7   $    5.6        22%

    -   General and administration costs increased by $4.6 million due to
        expenses relating to the previously mentioned acquisitions made in
        Q4/06 and Q2/07.

    -   The increase was also attributable to higher fees paid to external
        advisors primarily relating to the initiatives that were announced in
        Q1/07.

    -   The increase was partially offset by lower costs resulting from the
        insourcing of the investigative research function.


    Amortization

    (in millions of dollars)
                                    Nine months ended
                                     Sept.      Sept.
                                     30/07      30/06   $ increase % increase

                                   $   11.6   $    9.3   $    2.3        25%

    -   Amortization costs increased reflecting higher amortization of
        $2.3 million associated with the acquisitions made in Q4/06 and
        Q2/07.


    Income (Loss) from Investment in Affiliate

    (in millions of dollars)
                                    Nine months ended
                                     Sept.      Sept.
                                     30/07      30/06   $ increase

                                   $    0.2  ($    0.1)  $    0.3

    -   Income (loss) from investment in affiliate represents our share of
        CanDeal's income for the first nine months of 2007 based on our 47%
        interest in CanDeal. The improvement is due to CanDeal's continued
        progress in adding buy-side institutional investors, the introduction
        of transaction fees, and cost containment measures.


    Investment Income

    (in millions of dollars)
                                    Nine months ended
                                     Sept.      Sept.
                                     30/07      30/06   $ increase % increase

                                   $    9.9   $    9.5   $    0.4         4%

    -   Investment income increased due to improved returns from money market
        investments, partially offset by lower returns on short term bond and
        mortgage fund investments.

    -   During Q3/07 funds that would have otherwise been available for
        investment were used to repurchase 1,710,262 common shares under an
        NCIB at a cost of $73.8 million.


    Income Taxes

    (in millions of dollars)
                                                              Effective
                                                             tax rate (%)

                                    Nine months ended     Nine months ended
                                     Sept.      Sept.      Sept.      Sept.
                                     30/07      30/06      30/07      30/06

                                   $   70.9   $   65.8        37%        41%

    -   The higher effective tax rate in the first nine months of 2006
        related primarily to an increase of $9.6 million in income taxes,
        largely due to a reduction in the value of the future tax asset. In
        June 2006, the federal government enacted legislation to reduce
        corporate tax rates for 2008-2010 and beyond.

    -   The effective tax rate for the first nine months of 2007 was lower
        than the rate in the first nine months of 2006, but higher than our
        effective statutory rate of approximately 36% primarily due to an
        adjustment of $1.8 million in the value of the future tax asset. The
        future tax asset was reduced, and income taxes increased as a result
        of additional changes in federal corporate tax rates, enacted in June
        2007, for 2011 and beyond.


    Liquidity and Capital Resources

    Cash and Marketable Securities

    (in millions of dollars)

                    September 30, 2007  December 31, 2006        ($ decrease)

                             $   313.1          $   322.1         ($     9.0)

    -   The decrease was primarily due to the payment of three dividends of
        $0.38 per common share, or $78.1 million in aggregate and by payments
        totalling $73.8 million relating to the repurchase of 1,710,262
        common shares under an NCIB, which expires August 6, 2008. These
        decreases were offset by $168.5 million in cash from operations in
        the first nine months of 2007.


    Total Assets

    (in millions of dollars)

                    September 30, 2007  December 31, 2006        ($ decrease)

                             $ 1,279.9          $ 1,572.8         ($   292.9)

    -   Total assets decreased due to lower energy contracts receivable of
        $479.6 million at September 30, 2007 related to the clearing
        operations of NGX, compared with $889.4 million at the end of 2006.
        The reduced level of receivables reflected lower natural gas prices
        at the end of September 2007 compared with the end of December 2006.
        As the clearing counterparty to every trade, NGX also carries
        offsetting liabilities in the form of energy contracts payable, which
        were $479.6 million at September 30, 2007 compared with
        $889.4 million at the end of 2006.

    -   The overall decrease was partially offset by an increase in current
        assets following a change in accounting policy adopted effective
        January 1, 2007. We recorded $81.1 million related to the fair value
        of open energy contracts as at September 30, 2007. NGX also carried
        offsetting liabilities related to the fair value of open energy
        contracts which were $81.1 million at September 30, 2007.

    -   On August 14, 2007, we announced the completion of the shareholders
        agreement for CDEX Inc. ("CDEX"), which will operate DEX, our new
        Canadian derivatives exchange(+++). CDEX will be owned 52% by TSX
        Group and 48% by a wholly-owned subsidiary of International
        Securities Exchange ("ISE"). DEX is scheduled to begin operations in
        March 2009. We currently anticipate the joint cost of setting up this
        new exchange to be approximately $26.0 million. In Q3/07, TSX Group
        and ISE funded this amount to CDEX according to their share ownership
        in this venture. At September 30, 2007, CDEX's only significant
        asset, liability, revenue or expense was cash from financing
        activities in the amount of $26 million and a $1.1 million asset and
        corresponding accrued liability representing amounts owing under a
        technology agreement entered into in Q3/07 with OMX AB ("OMX") for
        the delivery and support of a new trading system for DEX. Our
        consolidated financial statements include our proportionate share of
        CDEX.

    -------------------
    (+++)Subject to regulatory filings/approval.


    Shareholders' Equity

    (in millions of dollars)

                    September 30, 2007  December 31, 2006        ($ decrease)

                             $   200.0          $   227.0         ($    27.0)

    -   Shareholders' equity decreased primarily due to dividend payments of
        $78.1 million and the purchase for cancellation during Q3/07 of
        1,710,262 common shares at a cost of $73.8 million under our NCIB.
        The decrease was offset by net income of $118.3 million in the first
        nine months of 2007, including net income from NGX of $2.8 million in
        the first nine months of 2007, as compared with net income from NGX
        of $3.3 million in the first nine months of 2006.

    -   At September 30, 2007 there were 66,963,174 common shares issued and
        outstanding. In the first nine months of 2007, 252,172 common shares
        were issued on the exercise of share options. At September 30, 2007,
        4,426,746 common shares were reserved for issuance upon the exercise
        of options granted under the share option plan. At September 30,
        2007, there were 987,345 options outstanding.

    -   At October 30, 2007, there were 66,963,970 common shares issued and
        outstanding and 981,555 options outstanding under the share option
        plan.


    Cash Flows from Operating Activities

    (in millions of dollars)
                                                                    Increase/
                                                                   (decrease)
                                                 Q3/07      Q3/06    in cash

    Cash Flows from Operating Activities      $   55.1   $   38.0   $   17.1

    Cash Flows from Operating Activities
     were $ 17.1 million higher in Q3/07
     compared with Q3/06 largely due to:

     (in millions of dollars)
                                                                    Increase/
                                                                   (decrease)
                                                 Q3/07      Q3/06    in cash

    Net income                                $   42.7   $   33.2   $    9.5
    Amortization                              $    4.1   $    3.2   $    0.9
    Unrealized (gain) on marketable
     securities                              ($    0.8)         -  ($    0.8)
    (Increase) in future tax asset,
     primarily related to deferring
     a portion of initial and additional
     listing fees                            ($    3.2) ($    4.1)  $    0.9
    Decrease in accounts receivable and
     prepaid expenses                         $    7.5   $    1.0   $    6.5
    Net increase in accounts payable and
     accrued liabilities                      $    6.4   $    6.5  ($    0.1)
    (Decrease) in deferred revenue           ($    2.5) ($    2.4) ($    0.1)
    Increase (decrease) in income taxes
     payable                                  $    1.5  ($    0.1)  $    1.6
    Net increase in other items              ($    0.6)  $    0.7  ($    1.3)
                                             ---------- ---------- ----------
    Cash Flows from Operating Activities      $   55.1   $   38.0   $   17.1
                                             ---------- ---------- ----------
    (in millions of dollars)
                                                Nine months ended   Increase/
                                                 Sept.      Sept.  (decrease)
                                                 30/07      30/06    in cash

    Cash Flows from Operating Activities      $  168.5   $  151.4   $   17.1
    Cash Flows from Operating Activities
     were $ 17.1 million higher in the
     first nine months of 2007 compared
     with the first nine months of 2006
     due to:

    (in millions of dollars)
                                                Nine months ended   Increase/
                                                 Sept.      Sept.  (decrease)
                                                 30/07      30/06    in cash

    Net income                                $  118.3   $   96.4   $   21.9
    Amortization                              $   11.6   $    9.3   $    2.3
    Unrealized loss on marketable securities  $    3.0          -   $    3.0
    (Increase) in future tax asset primarily
     related to deferring a portion of
     initial and additional listing fees     ($   13.3) ($   10.4) ($    2.9)
    (Increase) in accounts receivable and
     prepaid expenses                        ($   13.2) ($    3.0) ($   10.2)
    Net increase (decrease) in accounts
     payable and accrued liabilities         ($    5.4) ($    0.9) ($    4.5)
    Increase in deferred revenue primarily
     related to listing fees                  $   79.6   $   68.4   $   11.2
    (Decrease) in income taxes payable       ($   13.4) ($   10.8) ($    2.6)
    Net increase in other items               $    1.3   $    2.4  ($    1.1)
                                             ---------- ---------- ----------
    Cash Flows from Operating Activities      $  168.5   $  151.4   $   17.1
                                             ---------- ---------- ----------



    Cash Flows From (Used in) Financing Activities

    (in millions of dollars)
                                                                    Increase/
                                                                   (decrease)
                                                 Q3/07      Q3/06    in cash

    Cash Flows From (Used in) Financing
     Activities                              ($   98.9) ($   21.3) ($   77.6)

    Cash Flows Used in Financing Activities
     were $ 77.6 million higher in Q3/07
     compared with Q3/06 due to:

    (in millions of dollars)
                                                                    Increase/
                                                                   (decrease)
                                                 Q3/07      Q3/06    in cash

    (Decrease in) obligation under capital
     lease                                  ($     0.1) ($    0.2)  $    0.1
    Proceeds from exercised options          $     1.0   $    1.5  ($    0.5)
    Dividends paid on common shares         ($    26.0) ($   22.6) ($    3.4)
    Repurchase of common shares under NCIB  ($    73.8)         -  ($   73.8)
                                            ----------- ---------- ----------
    Cash Flows From (Used in) Financing
     Activities                             ($    98.9) ($   21.3) ($   77.6)
                                            ----------- ---------- ----------


    Cash Flows From (Used in) Financing
     Activities

    (in millions of dollars)
                                                Nine months ended   Increase/
                                                 Sept.      Sept.  (decrease)
                                                 30/07      30/06    in cash

    Cash Flows From (Used in) Financing
     Activities                             ($   148.2) ($   63.1) ($   85.1)

    Cash Flows Used in Financing Activities
     were $ 85.1 million higher in the
     first nine months of 2007 compared with
     the first nine months of 2006 due to:

    (in millions of dollars)
                                                Nine months ended   Increase/
                                                 Sept.      Sept.  (decrease)
                                                 30/07      30/06    in cash

    (Decrease in) obligation under capital
     lease                                  ($     0.6) ($    0.6)         -
    Proceeds from exercised options          $     4.3   $    5.1  ($    0.8)
    Dividends paid on common shares         ($    78.1) ($   67.6) ($   10.5)
    Repurchase of common shares under NCIB  ($    73.8)         -  ($   73.8)
                                            ----------- ---------- ----------
    Cash Flows From (Used in) Financing
     Activities                             ($   148.2) ($   63.1) ($   85.1)
                                            ----------- ---------- ----------



    Cash Flows From (Used in) Investing
     Activities

    (in millions of dollars)
                                                                    Increase/
                                                                   (decrease)
                                                 Q3/07      Q3/06    in cash

    Cash Flows From (Used in) Investing
     Activities                              $    53.2   $   35.9   $   17.3

    Cash Flows From Investing Activities
     were $ 17.3 million higher in Q3/07
     compared with Q3/06 due to:

    (in millions of dollars)
                                                                    Increase/
                                                                   (decrease)
                                                 Q3/07      Q3/06    in cash

    Capital expenditures primarily related
     to technology investments and leasehold
     improvements                           ($     2.4) ($    2.5)  $    0.1
    Payments related to option to purchase
     NetThruPut Inc. shares                 ($    10.3)         -  ($   10.3)
    Additions to intangible assets including
     TSX Quantum internal development costs ($     2.1)         -  ($    2.1)
    Net sale of marketable securities        $    68.0   $   38.4   $   29.6
                                            ----------- ---------- ----------
    Cash Flows From (Used in) Investing
     Activities                              $    53.2   $   35.9   $   17.3
                                            ----------- ---------- ----------

    (in millions of dollars)
                                                Nine months ended   Increase/
                                                 Sept.      Sept.  (decrease)
                                                 30/07      30/06    in cash

    Cash Flows From (Used in) Investing
     Activities                             ($    11.3) ($   38.7)  $   27.4

    Cash Flows Used in Investing Activities
     were $ 27.4 million lower in the first
     nine months of 2007 compared with the
     first nine months of 2006 due to:

    (in millions of dollars)
                                                Nine months ended   Increase/
                                                 Sept.      Sept.  (decrease)
                                                 30/07      30/06    in cash

    Capital expenditures primarily related
     to technology investments and leasehold
     improvements                           ($     4.6) ($    3.6) ($    1.0)
    Acquisition, net of cash acquired       ($     8.2)         -  ($    8.2)
    Payments related to option to purchase
     NetThruPut Inc. shares                 ($    10.3)         -  ($   10.3)
    Additions to intangible assets including
     TSX Quantum internal development costs ($     4.0)         -  ($    4.0)
    Net sale (purchase of) marketable
     securities                              $    15.8  ($   35.1)  $   50.9
                                            ----------- ---------- ----------
    Cash Flows From (Used in) Investing
     Activities                             ($    11.3) ($   38.7)  $   27.4
                                            ----------- ---------- ----------
    

    NGX Collateral Arrangements and Clearing Backstop Fund(4)

    As part of its clearing operations, NGX becomes the counterparty to each
transaction conducted through its electronic trading platform. To backstop its
clearing operations, NGX currently has a credit agreement in place with a
Canadian chartered bank. We are NGX's guarantor for this credit agreement up
to a maximum of $30 million. We have pledged $30 million of marketable
securities related to our obligations as guarantor. In addition, NGX has
covenanted under the agreement to maintain a minimum of $9 million of tangible
net worth. If NGX suffers a loss on its clearing operations, it could lose its
entire tangible net worth. The bank could also realize up to a maximum of
$30 million on our guarantee, to the extent required to cover the loss.
    On October 31, 2007, our Board of Directors approved an increase in the
NGX clearing backstop fund to US $100 million to accommodate the anticipated
growth in transaction activity. The previously secured guarantee of
$30 million will be replaced by an unsecured guarantee of US $100 million.
    NGX requires each counterparty (the Contracting Party) to provide
collateral in the form of cash or letters of credit based on the margins
required for its unsettled contractual obligations, which may be accessed in
the event of a default by such Contracting Party.
    The collateral provided in the form of cash (the cash collateral
deposits) is segregated in individually designated bank accounts held at the
same Canadian chartered bank by NGX, which acts as trustee for these funds.
The cash collateral deposits, together with letters of credit provided by all
the Contracting Parties, exceed all of the outstanding credit exposure, as
determined by NGX, for all its unsettled contractual obligations at any point
in time.

    
    ---------------------
    (4) The "NGX Collateral Arrangements and Clearing Backstop Fund" section
        above contains certain forward-looking statements. Please refer to
        "Forward-Looking Statements, Risks and Uncertainties" for a
        discussion of risks and uncertainties related to such statements.
    

    Financial Statements Governance Practice

    The Finance & Audit Committee of the Board of Directors of TSX Group Inc.
reviewed this press release as well as the Q3/07 unaudited consolidated
financial statements and Management's Discussion and Analysis ("MD&A") related
to these statements, and recommended they be approved by the Board of
Directors. Following review by the full Board, the financial statements, MD&A
and the contents of this press release were approved.

    Consolidated Financial Statements

    TSX Group's Q3/07 unaudited consolidated financial statements have been
prepared in accordance with Canadian generally accepted accounting principles
("GAAP") and are reported in Canadian dollars. The financial information in
this press release is in Canadian dollars unless otherwise indicated and is
based on financial statements prepared in accordance with Canadian GAAP,
unless otherwise noted.
    TSX Group expects to file its Q3/07 unaudited consolidated financial
statements and MD&A with Canadian securities regulators today, after which
time the statements and related MD&A may be accessed through www.sedar.com, or
on the TSX Group website at www.tsx.com. We are not incorporating information
contained on the website in this press release. In addition, copies of these
documents will be available upon request, at no cost, by contacting TSX Group
Investor Relations by phone at (416) 947-4277 or by e-mail at
shareholder@tsx.com.

    Non-GAAP Financial Measures

    In April 2007, TSX Group began to bill Toronto Stock Exchange customers
for initial and additional listing fees. Prior to this date, these fees were
paid upon the listing or reserving of securities which is still the practice
on TSX Venture Exchange. With the adoption of a new system, there is now a lag
between when securities are issued or reserved and when these listing fees are
paid for Toronto Stock Exchange listed issuers. In order to reflect this
change, we have adopted the terms issuer services fees billed, initial listing
fees billed and additional listing fees billed. These terms replace "listing
fees received", "initial listing fees received" and "additional listing fees
received", which have been used in previous financial reporting. The
composition of these measures, however, is unchanged.
    Certain measures used in this press release, specifically issuer services
fees billed, initial listing fees billed and additional listing fees billed do
not have standardized meanings prescribed by Canadian GAAP and therefore are
unlikely to be comparable to similar measures presented by other issuers. We
present these measures as an indication of how initial and additional listing
activity and the fees billed for listing or reserving securities, impact the
financial performance and cash flows of our business. Management uses these
measures to assess the effectiveness of our strategy to serve our listed
issuers and grow the listings portion of our business.

    Forward-Looking Statements, Risks and Uncertainties

    This press release, in particular the sections under the headings Issuer
Services Revenue Changes to Listing Fees for 2008, Trading and Related Revenue
Trading Fee Revisions - Toronto Stock Exchange and TSX Venture Exchange
announced on August 13, 2007, Market Data Revenue Changes to Market Data
Pricing for 2008, NGX Collateral Arrangements and Clearing Backstop Fund and
the table entitled Supplementary Information on Deferred Revenue - Initial and
Additional Listing Fees, contains forward-looking statements, which are not
historical facts but are based on certain assumptions and reflect our current
expectations. These statements relate to, among other things, anticipated
financial performance, business prospects, strategies, regulatory
developments, new services, market forces, commitments and technological
developments. Forward-looking statements are typically identified by words
such as "believe", "plan", "outlook", "anticipate", "continue", "estimate",
"may", "will", "should", "could", and similar expressions. These
forward-looking statements are subject to a number of risks and uncertainties
that could cause actual results or events to differ materially from current
expectations. We do not undertake to update or revise any forward-looking
statement that may be made from time to time by us or on our behalf. Some of
the risk factors that could cause actual results to differ materially from
current expectations are: competition from other exchanges or marketplaces,
including alternative trading systems, new technologies and other sources;
dependence on the economy of Canada; failure to retain and attract qualified
personnel; geopolitical factors which could cause business interruption;
dependence on information technology; failure to implement our strategy;
changes in regulation; risks of litigation; failure to develop or gain
acceptance of new products; adverse effect of new business activities;
dependence of our trading operations on a small number of clients; the risks
associated with NGX's clearing operations; our cost structure being largely
fixed; and dependence on market activity that is outside of our control. A
description of the above mentioned items and certain additional risk factors
are discussed in our materials, including our 2006 Annual MD&A and Annual
Information Form, filed with the securities regulatory authorities in Canada
from time to time. The risk factors outlined in the previously mentioned
documents are specifically incorporated herein by reference. Our business,
financial condition or operating results could be materially adversely
affected if any of these risks or uncertainties were to materialize. Given
these risks and uncertainties, investors should not place undue reliance on
forward-looking statements as a prediction of actual results.

    About TSX Group Inc.

    TSX Group operates Canada's two national stock exchanges, Toronto Stock
Exchange serving the senior equity market and TSX Venture Exchange serving the
public venture equity market, NGX, a leading North American exchange for the
trading and clearing of natural gas and electricity contracts and Shorcan, the
country's first fixed income inter-dealer broker. TSX Group also owns Equicom,
a leading provider of investor relations and related corporate communication
services in Canada. TSX Group is headquartered in Toronto and maintains
offices in Montreal, Winnipeg, Calgary and Vancouver.

    Teleconference/Audio Webcast

    TSX Group will host a teleconference/audio webcast to discuss the
financial results for Q3/07.
    Time: 4:00 p.m. - 5:00 p.m. ET on Wednesday, October 31, 2007.
    To teleconference participants: Please call the following number at least
15 minutes prior to the start of the event.

    
    Teleconference Number:   (416)-644-3420 or 1-800-732-9303

    AudioWebcast:            www.tsx.com, under Investor Relations

    Audio Replay:            416-640-1917 or 1-877-289-8525
                             The passcode for the replay is 21249061 followed
                             by the number sign.



    TSX GROUP INC.
    Interim Consolidated Balance Sheets
    (In thousands of dollars)
    (Unaudited)

    -------------------------------------------------------------------------
                                                   September 30, December 31,
                                                           2007         2006
    -------------------------------------------------------------------------

    Assets

    Current assets:
      Cash                                           $   45,981   $   37,018
      Marketable securities                             267,107      285,055
      Accounts receivable                                46,991       34,298
      Energy contracts receivable                       479,573      889,395
      Fair value of open energy contracts                81,113            -
      Prepaid expenses                                    6,006        2,914
      Future tax asset                                   22,906       25,095
      -----------------------------------------------------------------------
                                                        949,677    1,273,775

    Premises and equipment                               22,331       25,344
    Future tax asset                                    141,808      127,362
    Other assets                                         22,940       12,482
    Investment in affiliate                              11,549       11,357
    Intangible assets                                    65,713       62,652
    Goodwill                                             65,871       59,866

    -------------------------------------------------------------------------
                                                     $1,279,889   $1,572,838
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Liabilities and Shareholders' Equity

    Current liabilities:
      Accounts payable and accrued liabilities       $   37,683   $   39,194
      Energy contracts payable                          479,573      889,395
      Fair value of open energy contracts                81,113            -
      Deferred revenue                                   24,944        6,468
      Deferred revenue - initial and additional
       listing fees                                      59,078       50,410
      Obligation under capital lease                        318          778
      Income taxes payable                                7,900       20,465
      -----------------------------------------------------------------------
                                                        690,609    1,006,710

    Accrued employee benefits liability                  11,815       10,425
    Obligation under capital lease                           29          145
    Other liabilities                                    28,711       32,880
    Deferred revenue - initial and additional
     listing fees                                       348,709      295,723

    -------------------------------------------------------------------------

                                                      1,079,873    1,345,883
    Shareholders' equity:
      Share capital                                     383,245      387,501
      Share option plan                                   4,531        3,942
      Deficit                                          (187,760)    (164,488)
      -----------------------------------------------------------------------
                                                        200,016      226,955

    -------------------------------------------------------------------------
                                                     $1,279,889   $1,572,838
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    TSX GROUP INC.
    Interim Consolidated Statements of Income
    (In thousands of dollars, except per share amounts)
    (Unaudited)

    -------------------------------------------------------------------------
                                Three months ended         Nine months ended
                                      September 30,             September 30,
                                 2007         2006         2007         2006

    -------------------------------------------------------------------------

    Revenue:
      Issuer services      $   34,842   $   27,573   $   97,238   $   80,222
      Trading and related      41,514       28,204      126,509      110,849
      Market data              27,538       23,043       81,916       63,015
      Business services
       and other                2,233        2,377        7,870        7,736
      -----------------------------------------------------------------------
                              106,127       81,197      313,533      261,822

    Expenses:
      Compensation and
       benefits                23,466       18,945       71,582       57,676
      Information and
       trading systems          6,813        6,318       19,939       16,289
      General and
       administration          10,015        9,214       31,311       25,734
      Amortization              4,078        3,181       11,590        9,311
      -----------------------------------------------------------------------
                               44,372       37,658      134,422      109,010
    -------------------------------------------------------------------------

    Income from operations     61,755       43,539      179,111      152,812

    Income (loss) from
     investment in affiliate      130           86          192         (119)

    Investment income           4,726        5,084        9,895        9,499
    -------------------------------------------------------------------------

    Income before income
     taxes                     66,611       48,709      189,198      162,192

    Income taxes               23,929       15,492       70,940       65,784

    -------------------------------------------------------------------------
    Net income             $   42,682   $   33,217   $  118,258   $   96,408
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Earnings per share:
      Basic                $     0.63   $     0.49   $     1.73   $     1.41
      Diluted                    0.62         0.48         1.72         1.40
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    TSX GROUP INC.
    Interim Consolidated Statements of Changes in Shareholders' Equity
    (In thousands of dollars)
    (Unaudited)

    -------------------------------------------------------------------------
                                                          Nine months  ended
                                                                September 30,
                                                           2007         2006
    -------------------------------------------------------------------------


    Common shares:
      Balance, beginning of period                   $  387,501   $  380,925
      Proceeds on options exercised                       4,360        5,162
      Cost of exercised options                           1,150        1,249
      Purchased under normal course issuer bid           (9,766)           -
      -----------------------------------------------------------------------
      Balance, end of period                            383,245      387,336

    Share option plan:
      Balance, beginning of period                        3,942        2,669
      Cost of exercised options                          (1,150)      (1,249)
      Cost of share option plan                           1,739        1,886
      -----------------------------------------------------------------------
      Balance, end of period                              4,531        3,306

    Deficit:
      Balance, beginning of period                     (164,488)    (205,799)
      Transitional adjustment                               621            -
      Net income                                        118,258       96,408
      Dividends on common shares                        (78,113)     (67,638)
      Purchased under normal course issuer bid          (64,038)           -
      -----------------------------------------------------------------------
      Balance, end of period                           (187,760)    (177,029)

    -------------------------------------------------------------------------
    Shareholders' equity, end of period              $  200,016   $  213,613
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    TSX GROUP INC.
    Interim Consolidated Statements of Cash Flows
    (In thousands of dollars)
    (Unaudited)

    -------------------------------------------------------------------------
                                Three months ended         Nine months ended
                                      September 30,             September 30,
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------

    Cash flows from
     (used in) operating
     activities:
      Net income           $   42,682   $   33,217   $  118,258   $   96,408
      Adjustments to
       determine net cash
       flows:
        Amortization            4,078        3,181       11,590        9,311
        Unrealized (gain)
         loss on marketable
         securities              (829)           -        2,957            -
        (Income) loss from
         investment in
         affiliate               (130)         (86)        (192)         119
        Cost of share
         option plan              578          663        1,739        1,886
        Future tax asset       (3,221)      (4,088)     (13,321)     (10,356)
        Energy contracts
         receivable           212,016       62,088      409,822      523,855
        Fair value of open
         energy contracts      46,226            -      (81,113)           -
        Accounts receivable
         and prepaid
         expenses               7,545          993      (13,171)      (2,958)
        Other assets           (1,050)         190         (193)         198
        Accounts payable and
         accrued liabilities    6,478       11,415       (2,614)      13,714
        Energy contracts
         payable             (212,016)     (62,088)    (409,822)    (523,855)
        Fair value of open
         energy contracts     (46,226)           -       81,113            -
        Long term accrued and
         other liabilities        (35)      (4,936)      (2,825)     (14,609)
        Deferred revenue       (2,541)      (2,407)      79,600       68,423
        Income taxes payable    1,547         (149)     (13,373)     (10,775)
      -----------------------------------------------------------------------
                               55,102       37,993      168,455      151,361

    Cash flows from (used in)
     financing activities:
        Reduction in obligation
         under capital lease     (182)        (207)        (612)        (631)
        Proceeds on exercised
         options                1,016        1,473        4,360        5,162
        Dividends on common
         shares               (25,971)     (22,564)     (78,113)     (67,638)
        Purchased under normal
         course issuer bid    (73,804)           -      (73,804)           -
      -----------------------------------------------------------------------
                              (98,941)     (21,298)    (148,169)     (63,107)

    Cash flows from (used in)
      investing activities:
        Additions to premises
         and equipment         (2,424)      (2,493)      (4,631)      (3,620)
        Acquisitions, net of
         cash acquired              -            -       (8,142)           -
        Acquisition of
         option               (10,265)           -      (10,265)           -
        Additions to
         intangible assets     (2,105)           -       (4,030)           -
        Marketable
         securities            67,968       38,355       15,745      (35,048)
      -----------------------------------------------------------------------
                               53,174       35,862      (11,323)     (38,668)
    -------------------------------------------------------------------------

    Increase in cash            9,335       52,557        8,963       49,586
    Cash, beginning of
     period                    36,646       25,514       37,018       28,485

    -------------------------------------------------------------------------
    Cash, end of period    $   45,981   $   78,071   $   45,981   $   78,071
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------

    Supplemental cash flow
     information:
        Interest paid      $      264   $      232   $      653   $      497
        Interest received       4,119        3,637       12,211       11,160
        Income taxes paid      25,992       20,940       97,337       87,858
    -------------------------------------------------------------------------
    -------------------------------------------------------------------------



    TSX GROUP INC.

    Market Statistics

    (Unaudited)
    -------------------------------------------------------------------------
                                Three months ended         Nine months ended
                                   September 30               September 30
    -------------------------------------------------------------------------
                                 2007         2006         2007         2006
    -------------------------------------------------------------------------

    Toronto Stock Exchange:
      Volume (millions)      22,855.7     17,150.9     71,382.7     60,203.9
      Value ($ billions)        439.6        339.7      1,257.5      1,048.3
      Transactions (000s)        30.7         19.5         84.4         61.6
      Issuers Listed            1,611        1,587        1,611        1,587

      New Issuers Listed:          41           44          155          151
        Number of Initial
         Public Offerings          14           19           72           84
        Number of graduates
         from TSX Venture/NEX      18           15           57           47
      New Equity Financing:
       ($ millions)           7,629.0      6,985.2     35,885.3     28,779.9
        Initial Public
         Offering Financings
         ($ millions)           999.3        957.9      4,693.6      8,042.1
        Secondary Offering
         Financings(1)
         ($ millions)         4,023.2      3,323.7     17,245.9     13,065.2
        Supplementary
         Financings
         ($ millions)         2,606.5      2,703.6     13,945.8      7,672.6
      Market Cap of Issuers
       Listed ($ billions)    2,156.6      1,907.2      2,156.6      1,907.2
      S&P/TSX Composite
       Index(2) Close        14,098.9     11,761.3     14,098.9     11,761.3


    TSX Venture Exchange:(3)
      Volume (millions)      11,083.5      6,562.3     38,009.2     28,229.5
      Value ($ millions)      8,409.8      5,609.2     33,591.7     25,309.8
      Transactions (000s)     1,788.5      1,163.6      6,439.5      4,892.0
      Issuers Listed            2,297        2,233        2,297        2,233

      New Issuers Listed           67           52          186          137
      New Equity Financing:
       ($ millions)           2,901.5      1,258.7      8,729.1      5,865.0
        Initial Public
         Offering Financings
         ($ millions)            85.6        123.8        325.3        271.0
        Secondary Offering
         Financings(1)
         ($ millions)         2,815.9      1,134.9      8,403.8      5,594.0
      Market Cap of Issuers
       Listed: ($ billions)      58.6         44.7         58.6         44.7
      S&P/TSX Venture
       Composite Index(2)
       Close

    Toronto Stock Exchange
     and TSX Venture Exchange:
      Professional and
       Equivalent Real-time
       Data Subscriptions     155,135      134,986      155,135      134,986

    (1) Secondary Offering Financings includes prospectus offerings on both a
        treasury and secondary basis.
    (2) S&P is a trade-mark owned by The McGraw-Hill Companies, Inc. and is
        used under license.
    (3) TSX Venture Exchange market statistics do not include data for debt
        securities. 'New Issuers Listed' and 'S&P/TSX Venture Composite Index
        Close' statistics exclude data for issuers on NEX. All other TSX
        Venture Exchange market statistics include data for issuers on NEX,
        which is a board that was established on August 18, 2003 for issuers
        that have fallen below TSX Venture's listing standards (152 issuers
        at September 30, 2007 and 180 issuers at September 30, 2006).



    SUPPLEMENTARY INFORMATION ON DEFERRED REVENUE - INITIAL AND ADDITIONAL
    LISTING FEES(1)
    As at September 30, 2007
    (Unaudited)

    (in millions of dollars)
    -------------------------------------------------------------------------

    Future amortization of deferred revenue - initial and additional listing
    fees

    -------------------------------------------------------------------------
                  Q1           Q2           Q3            Q4     Total Year
    -------------------------------------------------------------------------
        2007           -            -            -         15.0         15.0
        2008        14.8         14.7         14.6         14.5         58.6
        2009        14.4         14.3         14.1         14.0         56.8
        2010        13.9         13.7         13.6         13.5         54.7
        2011        13.3         13.1         13.0         12.7         52.1
        2012        12.5         12.1         11.8         11.5         47.9
        2013        11.2         11.0         10.5         10.0         42.7
        2014         9.5          8.9          8.5          7.9         34.8
        2015         7.4          6.7          6.1          5.7         25.9
        2016         5.1          4.3          3.5          2.9         15.8
        2017         2.1          1.2          0.2            -          3.5
        Total deferred revenue-initial and additional listing fees   $ 407.8

    Note: only includes initial and additional listing fees billed up to
    September 30, 2007 (and is calculated based on an estimated service
    period of ten years).

    (1) Please refer to Forward-Looking Statements, Risks and Uncertainities
    





For further information:

For further information: Steve Kee, Director, Corporate Communications,
TSX Group, Office: (416) 947-4682, E-Mail: steve.kee@tsx.com; Paul Malcolmson,
Director, Investor and Public Relations, TSX Group, Office: (416) 947-4317,
E-Mail: paul.malcolmson@tsx.com


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