TSX Group and International Securities Exchange Announce DEX(TM) - A New Canadian Derivatives Exchange

    New Exchange Scheduled To Begin Operations in 2009

    TORONTO and NEW YORK, March 5 /CNW/ - TSX Group CEO Richard Nesbitt and
International Securities Exchange (ISE) President and CEO David Krell today
announced the creation of DEX, a new derivatives exchange to be launched by
two of the world's leading marketplaces. DEX, which is scheduled to begin
operation in March 2009, will be owned 52% by TSX Group and 48% by ISE and
will list and trade options, futures and options on futures on a range of
Canadian securities.
    DEX will pair TSX's pre-eminent position as the leading Canadian market
for Canadian securities together with ISE's superior derivatives trading
platform, including OMX's trade match engine and ISE's complementary suite of
technology. With a distinct order book and trading rules, DEX will complement
TSX Group's exchanges to provide investors with a full suite of trading
products and strategies.
    "We are excited to announce this new exchange with ISE, a company that
has shown great innovation and growth in the very competitive US derivatives
market," said Richard Nesbitt, TSX Group's CEO. "Our commitment to customers
is to provide innovative products and services and the best trading solutions.
With the launch of DEX, we will be offering both cash and derivatives trading,
and providing maximum flexibility, to our customers."
    ISE President and CEO David Krell said, "We believe this unique
opportunity will bring additional value to our members and shareholders as
well. We have seen tremendous growth in ISE's derivatives offering across the
US, and we see this alliance as a first step in expanding our international
footprint. Working with a leading exchange group like TSX Group is clearly a
natural fit."
    Between now and the launch in 2009, professionals from both TSX Group and
ISE will work on the implementation strategy. Robert Fotheringham, TSX Group's
Vice-President of Trading, and Thomas Ascher, ISE's Chief Strategy Officer,
are leading the initiative. Mr. Nesbitt added, "We have a busy agenda and
exciting opportunities ahead of us with the end result being a world-class
derivatives exchange for Canada. This is truly an exciting time for our
markets and we look forward to the launch of DEX in 2009."
    "We are pleased to be executing on one of our key strategic initiatives
to deliver ISE's derivatives expertise and trading capabilities to the
international marketplace. This venture with TSX Group will create a new
platform to expand the trading alternatives available for investors in
Canadian securities and will clearly benefit the Canadian market," said
Mr. Krell.
    The anticipated cost of setting up this new exchange between now and the
launch in March 2009 is approximately $26 million (Canadian). The costs will
be split between TSX Group and ISE according to the share ownership of the new
    This binding arrangement between TSX Group and ISE is subject to certain
usual and customary conditions, including applicable regulatory filings and
approvals, and is subject to termination in certain circumstances.

    Certain statements constitute forward-looking statements and are not
historical facts but are based on certain assumptions and reflect TSX Group's
current expectations regarding future results or events. These statements are
subject to a number of risks and uncertainties that could cause actual results
or events to differ materially. Some of the risk factors that could cause
actual results or events to differ materially from current expectations are
outlined in TSX Group's Annual Report, Quarterly Reports and Annual
Information Form filed with securities regulators from time to time.
    Certain matters discussed in this press release are "forward looking
statements" intended to qualify for the safe harbor from liability established
by the Private Securities Litigation Reform Act of 1995. These statements
relate to future events or ISE's future financial performance, and involve
known and unknown risks, uncertainties and other factors that may cause ISE's
actual results, levels of activity, performance or achievements, to be
materially different from those contemplated by the forward looking
statements. ISE undertakes no ongoing obligation, other than that imposed by
law, to update these statements. Factors that could affect ISE's results,
levels of activity, performance or achievements and cause them to materially
differ from those contained in the forward looking statements can be found in
ISE's filings with the Securities and Exchange Commission, including ISE's
annual report on Form 10-K, current reports on Form 8-K and quarterly reports
on Form 10-Q, as amended.

    Events Scheduled for March 5 (Eastern Standard Time)

    8:30 a.m. Joint TSX/ISE Analyst Call

    TSX Group Inc. and ISE will hold an Analyst Call at 8:30 a.m. this
    morning to discuss today's announcement.

    Phone numbers for the live call are: 416-644-3430 and 1-800-590-1817

    Richard Nesbitt, Chief Executive Officer, TSX Group and David Krell,
International Securities Exchange President and CEO, along with the CFOs of
both corporations, will participate on the call. An audio replay of the
conference call will be available at 416-640-1917 and 1-877-289-8525, passcode
21221534 followed by the number sign.
    The audio web cast of the conference call will also be available on TSX
Group's website at www.tsx.com, under Investor Relations and on the
International Securities Exchange website at http://www.iseoptions.com/ under
the Investor Relations section.

    10:00 a.m. TSX/ISE Joint News Conference

    TSX Group CEO Richard Nesbitt and International Securities Exchange
President and CEO David Krell will hold a news conference at 10:00 a.m. March
5 in the TSX Gallery. A live feed of the news conference will be available in
TSX Group's Montreal office. For an audio feed of the news conference, dial in
at 416-644-3432 or 1-800-590-1508. An audio replay of the news conference will
be available by calling 416-640-1917 or 1-877-289-8525, passcode 21221563
followed by the number sign.

    Toronto: TSX Broadcast Centre, Main Floor, 130 King Street West, Toronto
    (King and York Streets)

    Montreal: TSX Group Montreal Office, Suite 1100, 1000 Sherbrooke Street
    West, Montreal, QC

    Television Editors -- Media may pick up a feed from the TOC (television
    operations centre) for the news conference. The feed is named TSX
    Transmit 2 and is produced at the TSX and sent live to the TOC.

    About TSX Group Inc. (TSX-X)

    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, Natural Gas Exchange (NGX), a leading North
    American exchange for the trading and clearing of natural gas and
electricity contracts and Shorcan Brokers Limited, the country's first fixed
income inter-dealer broker. TSX are the initials attached to the core equity
operations of TSX Group (www.tsx.com): Toronto Stock Exchange, TSX Venture
Exchange, TSX Markets, TSX Datalinx, and TSX Technologies. TSX Group is
headquartered in Toronto and maintains offices in Montreal, Winnipeg, Calgary
and Vancouver.

    About ISE

    International Securities Exchange Holdings, Inc. (NYSE:   ISE), through its
subsidiaries, operates a family of innovative securities markets. ISE is
founded on the principle that technology and competition create better, more
efficient markets for investors and consists of an options exchange, a stock
exchange and an alternative markets platform. ISE continually enhances its
trading systems and develops new products to provide investors with the best
marketplace and investment tools to trade smarter.
    ISE developed a unique market structure for advanced screen-based trading
systems and in May 2000 launched the first fully-electronic US options
exchange. Currently, ISE operates the largest U.S. equity options exchange and
is among the leading options exchanges in the world. ISE offers index options,
including a portfolio of proprietary index products, and enhanced market data
products for sophisticated investors. ISE FX Options(TM) are slated to launch
in 2007.
    ISE Stock Exchange, launched in September 2006 with strategic partners,
includes an innovative MidPoint Match(TM) platform which offers investors
continuous price improvement. MidPoint Match was integrated with a
fully-displayed Best Bid Offer market in the fourth quarter of 2006.
    ISE's alternative markets business currently consists of an events market
trading platform known as Longitude. Longitude's patented and proprietary
technology provides a unique parimutuel structure for derivatives auctions
which results in greater trading and pricing flexibility for market
    For more information about ISE and its options exchange, visit
www.iseoptions.com and for more information about ISE Stock Exchange, visit
www.isestock.com. Additionally, to learn more about ISE alternative markets
technology, visit www.longitude.com.

For further information:

For further information: TSX Contacts: Media: Steve Kee, Director, Media
& Marketing, TSX Group Inc., Toronto Office: (416) 947-4682, Toll Free:
1-888-873-8392, Cellular: (416) 358-3714, Vancouver Office: (604) 602-6902,
Calgary Office: (403) 218-2892, steve.kee@tsx.com; Sylvin Gauthier,
Information Coordinator, Montreal Office: (514) 788-2414,
sylvin.gauthier@tsx.com; Investors: Michael Ptasznik, Chief Financial Officer,
TSX Group Inc., (416) 947-4791, Michael.ptasznik@tsx.com; ISE Contacts: Media:
Molly H. McGregor, International Securities Exchange, (212) 897-0275,
mmcgregor@iseoptions.com; Investors: Thomas Gibbons, International Securities
Exchange, (212) 897-8167, tgibbons@iseoptions.com

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