Download The establishment of Nasdaq Canada in Montreal: the position of

The establishment of
Nasdaq Canada in
Montreal: the position of
the Government of
Québec
Québec’s business
environment
❚ Québec: promoter of free-trade
❙ service sector more and more prominent
A diversified industrial
structure
Real GDP by major sector — 1999
Service sector 70%
Resource sector 3%
Manufacturing sector 27%
Québec’s business
environment
❚ Québec: promoter of free-trade
❙ Québec’s corporations at the vanguard of the
world economy
Aerospace
•Bombardier Aeronautics
•CAE Electronics
•Pratt & Whitney Canada
•Rolls-Royce Canada
•Bell Helicopter Textron
•Honeywell Aerospace
•Lockheed Martin
•BAE Systems Canada
Information Technologies
•CGI
•Nortel Networks
•IBM
•Bell Canada
•Ericsson
•Microcell
•SR Telecom
•EMS Technologies
•SHL Systemhouse
•DMR
•LGS
Pharmaceutical industry
•BioChem Pharma
•Novartis Pharma
•Bristol-Myers Squibb
•Merck Frosst
•Pfizer
•Aventis
•Wyeth-Ayerst
•Abbott Laboratories
•Roche Diagnostics
•AstraZeneca
•Anapharm
Québec’s business
environment
❚ Québec: promoter of free-trade
❙ Importance of research and development
An innovative economy
Real R&D spending by firms
(average growth rate 1986-1997)
7.0%
4.4%
4.4%
2.6%
2.4%
0.9%
0.0%
-0.2%
Québec’s business
environment
❚ Québec: promoter of free-trade
❙ An economy which benefits from its openness
to the world
An open economy
Cumulative growth in merchandise exports
1988-1999
498
Telecommunications equipment
364
Aircraft and parts
Transportation equipment excluding
automobiles and aircraft
291
Machines, tools and office
equipment
Chemical products and
petroleum derivatives
Total
169
Manufactured goods related to
the processing of natural resources
Primary products
47
Automobiles and parts
0
%
100
%
200
%
300
%
400
%
500%
Total and international exports
(as a percentage of Québec’s GDP)
1988
1999
59%
44%
39%
21%
Total exports
International
exports
23%
20%
Interprovincial
exports
The establishment of
Nasdaq Canada in Montreal
Recap of Québec ’s motives :
➨ Reinforce Québec’s openness towards the
international trade of goods and services, and
towards global financial markets
➨ Offer investors simplified access to growth
securities at a lower transaction cost
➨ Offer corporations a better access to the vast
reservoir of capital in order to facilitate their
expansion
Nasdaq: Québec's
objectives
❚ Participation to Nasdaq worldwide
strategy
❚ Linkage of pools of capital
❚ Provide companies with the best
possible exposure to investors
Nasdaq: Québec's
objectives
❚ Promote competition and freer trade
❚ Give companies the best access to
capital at crucial stages of their
growth
❚ Bring more competition to the
financial sector
❚ Nasdaq's brand name and credibility
are essential to this project
The establishment of
Nasdaq Canada in Montreal
➨ Consolidate the importance of
Montreal as a world class financial
centre (stocks, derivatives, funds,
IFCs)
➨ Continue to pursue Québec’s
development of its hi-tech sectors
The Government of
Québec’s offer to Nasdaq
➨ A lightened « fast track »
recognition procedure:
➨ Adoption of Act 125 (chapter 28, 16 June 2000)
➨ Phase I, recognition by the Québec Securities
Commission (CVMQ) of NADS registered
broker/dealers allowing them to trade on
Nasdaq-New York from Montreal
➨ Phase II, listing on Nasdaq Canada of Canadian
companies
➨ The CVMQ is responsible for the development
of the relationship of this new exchange with
the other securities commissions in Canada.