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CIRCULAR March 5, 2009 FUTURES CONTRACTS MARGIN REQUIREMENTS, INDEX PRODUCTS FLOATING MARGIN RATES, CURRENCY OPTION MARGIN RATES AND TRACKING ERROR MARGIN RATES

Bourse de Montréal Inc. (the Bourse) sets futures contracts margin rates, index products floating margin rates and tracking error margin rates and currency options margin rates. The Bourse updates these rates on a monthly basis or when justified by market conditions. The Bourse, in collaboration with Canadian Derivatives Clearing Corporation (CDCC), has determined that futures contract margin rates, in the case of speculators and hedgers, must be modified as follows: FUTURES CONTRACTS ONX - 30-Day Overnight Repo Rate BAX - Three-month Canadian Bankers' Acceptance CGZ - Two-year Canadian Government Bond CGB - Ten-year Canadian Government Bond LGB - Thirty-year Canadian Government Bond SXF - S&P/TSX 60 Index SXA - S&P/TSX Global Gold Index SXB - S&P/TSX Capped Financials Index SXH - S&P/TSX Capped Information Technology Index SXY - S&P/TSX Capped Energy Index MCX – Carbon Dioxide Equivalent (CO2e) Units

MARGIN TYPE Speculator Hedger Speculator Hedger Speculator Hedger Speculator Hedger Speculator Hedger Speculator Hedger Speculator Hedger Speculator Hedger Speculator Hedger Speculator Hedger Speculator Hedger

PREVIOUS RATE $2,050 $1,950 $850 $800 $2,350 $2,250 $3,400 $3,200 $5,550 $5,350 $17,500 $17,300 $18,250 $18,050 $4,150 $3,950 $1,450 $1,350 $10,000 $9,800 $500 $450

NEW RATE $2,050 $1,950 $850 $800 $2,250 $2,150 $2,800 $2,700 $6,450 $6,250 $13,450 $13,250 $15,350 $15,150 $3,450 $3,250 $1,200 $1,100 $7,450 $7,250 $300 $250

Note: The "Speculator" designation applies to all clients, except acceptable institutions, acceptable counterparties, regulated entities and bona fide hedgers, as defined in the Rules and Policies of the Bourse.

Circular no.: 037-2009 Tour de la Bourse P.O. Box 61, 800 Victoria Square, Montréal, Quebec H4Z 1A9 Telephone: (514) 871-2424 Toll-free within Canada and the U.S.A.: 1 800 361-5353 Website: www.m-x.ca

Circular no.: 037-2009

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FUTURES CONTRACT SPREAD POSITIONS The following is a summary of the margin rates applicable to spread positions in futures contracts listed at Bourse de Montréal Inc.: MARGIN TYPE SPREADS MARGIN TYPE SPREADS BUTTERFLY (consecutive expiry months) BUTTERFLY (non-consecutive expiry months)

INDEX FUTURES CONTRACTS/CARBON DIOXIDE FUTURES CONTRACTS SXF

SXA

SXB

SXH

SXY

$350

$100

$100

$100

$100

ONX

INTEREST RATE FUTURES CONTRACTS BAX CGZ CGB

MCX $250

LGB

$132

$257

$200

$200

$200

N/A

$190

N/A

N/A

N/A

N/A

$323

N/A

N/A

N/A

MARGIN ON INTER-COMMODITY SPREAD POSITIONS SPREAD POSITION CGB-CGZ Speculator Hedger

PREVIOUS MARGIN RATE $5,950 $5,625

NEW MARGIN RATE $5,150 $4,950

Note : For margin and capital calculation purposes, since the size of the CGB and CGZ futures contracts are different, the abovementioned margin may be used only if the pairing is made by taking into account the size difference of these futures contracts. This means that the spread position must consist of two (2) CGB futures contracts ($100,000 size) and one (1) CGZ futures contract ($200,000 size).

SPREAD POSITION LGB-CGB Speculator Hedger

PREVIOUS MARGIN RATE $6,715 $6,415

NEW MARGIN RATE $6,940 $6,715

SPREAD POSITION CGB-BAX Speculator Hedger

PREVIOUS MARGIN RATE -----

NEW MARGIN RATE $3,140 $3,020

FLOATING MARGIN RATES In regards to index products floating margin rates, the following rates have been determined: BASKET OF INDEX SECURITIES FLOATING MARGIN RATES S&P/TSX 60 Index S&P/TSX Global Gold Index S&P/TSX Capped Financials

PREVIOUS RATE

NEW RATE

16.75% 29.75% 17.25%

14.25% 26.00% 16.25%

INDEX PARTICIPATION SHARES PREVIOUS NEW RATE RATE 15.25% 28.00% 15.00%

13.25% 24.75% 14.75%

Circular no.: 037-2009

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BASKET OF INDEX SECURITIES FLOATING MARGIN RATES Index S&P/TSX Capped Information Technology Index S&P/TSX Capped Energy Index S&P/TSX Capped Materials Index

INDEX PARTICIPATION SHARES PREVIOUS NEW RATE RATE

PREVIOUS RATE

NEW RATE

12.75%

11.75%

12.75%

11.75%

24.25%

20.25%

22.75%

19.25%

N/A

N/A

24.75%

21.50%

CURRENCY OPTION MARGIN RATES

CURRENCY OPTION MARGIN RATES USX - US Dollar Option

RATES PREVIOUS RATE

NEW RATE

6.50%

5.80%

TRACKING ERROR MARGIN RATES

In regards to index products tracking error margin rates, the following rates have been determined: PREVIOUS RATE Index Index IPU and and and IPU Futures Futures

NEW RATE Index Index IPU and and and IPU Futures Futures

S&P/TSX 60 Index

4.00%

4.00%

4.75%

3.25%

3.75%

4.50%

S&P/TSX Global Gold Index

5.00%

8.25%

7.50%

6.25%

5.00%

6.25%

S&P/TSX Capped Financials Index

4.75%

3.75%

5.75%

4.00%

3.25%

5.00%

S&P/TSX Capped Information Technology Index

7.25%

5.00%

8.25%

4.75%

4.50%

6.00%

S&P/TSX Capped Energy Index

3.75%

5.25%

5.25%

3.00%

3.75%

4.00%

S&P/TSX Capped Materials Index

4.00%

N/A

N/A

3.25%

N/A

N/A

TRACKING ERROR MARGIN RATES

These new margin requirements will be implemented with end of day processing on Thursday, March 5, 2009. For further information, please contact Santo Ferraiuolo, Market Analyst, Regulatory Division, at 514 871-4949, extension 413, or by e-mail at [email protected].

Jacques Tanguay Vice-President, Regulatory Division