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.

Request for Comments

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

The Rules and Policies Committee of Bourse de Montréal Inc. (the "Bourse") has approved amendments as part of its 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.

Comments on the proposed amendments must be submitted at the latest on October 8, 2018. Please submit your comments to:

Martin Jannelle
Legal Counsel
Bourse de Montréal Inc.
1800 - 1190 Avenue des Canadiens-de-Montréal
P.O. Box 37
Montréal, Quebec  H3B 0G7
Email: legal@tmx.com

A copy of these comments shall also be forwarded to the Autorité des marchés financiers (the "Autorité") to:

Me Anne-Marie Beaudoin
Corporate Secretary
Autorité des marchés financiers
800 Victoria Square, 22nd Floor
P.O. Box 246, Tour de la Bourse
Montréal, Quebec  H4Z 1G3
Email: consultation-en-cours@lautorite.qc.ca

Please note that comments received by one of these recipients will be transferred to the other recipient and that the Bourse may publish a summary of such comments as part of the self-certification process concerning this file. Unless specified otherwise, comments will be published anonymously by the Bourse.

Appendices

You will find below the following documents:

The implementation date of the proposed amendments will be determined by the Bourse, in accordance with the self-certification process as established by the Derivatives Act (CQLR, chapter I-14.01).

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).