Canadian Derivatives Exchange*

Rule Modernization Project

In 2014, Bourse de Montréal Inc. (the "Bourse") undertook a project (the "Rule Modernization Project") to update, modernize and reorganize its rules applicable to its activities and to market participants (the "Rules"). The primary objective of the Rule Modernization Project was to provide Rules that are clear, updated, organized in a logical fashion and that accurately reflect the current trading environment.

As part of the Rule Modernization Project, the Bourse examined a number of substantive articles in need of updating. During this stage of the project, the Bourse proposed amendments to many articles.

Following these substantive amendments, the last phase of the Rule Modernization Project is to reorganize the structure of the Rules, and to update and harmonize the language of the Rules. Except for the few minor substantive changes described in the analysis attached below, the proposed changes all pertain to form and conforming terms. None of the changes are intended to modify the substantive meaning or application of the Rules as currently in effect. The Bourse is requesting comments concerning the substantive rule amendments as well as the form and conforming amendments presented in this circular and described in the attached analysis.

Self-certification

Reorganization of the Rules structure, certain conforming substantive amendments and various non-substantive editorial amendments

On November 3, 2016 and November 8, 2018, the Rules and Policies Committee of Bourse de Montréal Inc. (the “Bourse”) approved amendments as part of the Rule Modernization Project. Those amendments to the Rules of the Bourse aim to establish a new Rules’ structure, update the terminology to ensure consistency throughout the Rules, and update cross-references to align with the new numbering convention and abrogate articles that are no longer relevant or redundant. These amendments were self-certified in accordance with the self certification process as established in the Derivatives Act (CQLR, Chapter I-14.01).

The reorganized Rulebook will become effective on January 1st, 2019 and is available on the Bourse’s website.

The amendments described in the present circular were published for public comment by the Bourse on June 15, 2018 (see Circular 104-18 ). Further to the publication of this circular, no comment was received by the Bourse.

For additional information, please contact Martin Jannelle, Legal Counsel, at 514-787-6578 or by email at: martin.jannelle@tmx.com.

Appendices

You will find below the following documents:

Process for Changes to the Rules

The Bourse is authorized to carry on business as an exchange and is recognized as a self-regulatory organization by the Autorité. The Board of Directors of the Bourse has delegated to the Rules and Policies Committee of the Bourse its powers to approve and amend the Rules, the Policies and the Procedures, which are thereafter submitted to the Autorité in accordance with the self-certification process as determined by the Derivatives Act (CQLR, chapter I-14.01).