As of today, all three markets linked to the Canadian Federal Election on November 27, 2000 have been liquidated. The Majority Government Market has already been liquidated on December 4th, Investors who only invested in the Majority Government market and those traders who only held cash balances but no contracts have already received their payouts earlier this month. Due to the delay caused by Election Canada's judicial recounts in several ridings, the liquidation of the Popular Vote Market and Seats Share Market had been delayed until today.

Upon liquidation of the market, stock positions in all three CA01 markets have been converted into cash according to the official election results for the popular vote share, number of seats share, and majority government formation. Traders who continue trading in the British Columbia election markets will be able to use this new cash balance immediately for trades in these makets. Traders who have have only invested in the Canadian federal election markets will have their accounts closed and the cash balance paid out by cheque.

For accounts that have been closed we have issued cheques for the cash balance as well as liquidation statements which detail the stock positions that have been liquidated. Due to the advance liquidation of the Majority Government Market, the liquidation statement appears on two pages. Cheques and liquidation statements will be sent out by regular mail through Canada Post on Monday, December 18.

Continuing traders in the 2001 BC provincial election stock market, who will not receive cheques, can request a funds withdrawal if they would like to reduce their investment position until an election call is issued.

Liquidation prices are posted below on this web page. In case where simple rounding of the seats share or popular vote share would lead the equivalent share prices to add up to 99.9 or 100.1 cents, we have used the Hamilton/Hare largest-remainder procedure to calculate the proper rounding that will ensure that prices sum to exactly 100.0 cents.

Note: The Hamilton/Hare procedure was applied as follows. Divide each party's number of seats by the total number of seats (301) and then multiply by 1000 to obtain prices expressed in 10th of cents. The integer parts sum up to 998, which requires allocation of two units to the contracts with the largest denominators. This turns out to be the CA01.S.PCP and CA01.S.LIB contracts. The calculations are shown below in detail:

If you have any questions about the liquidation process, please contact us at esm@esm.ubc.ca or by phone at 604-822-8399.