CDS CLEARING AND DEPOSITORY SERVICES INC. (CDS®)
TECHNICAL AMENDMENTS TO CDS PROCEDURES
FAILURE TO RECEIVE PARTICIPANT PROCEDURES
NOTICE OF EFFECTIVE DATE
A. DESCRIPTION OF THE RULE AMENDMENT
Description of Proposed Amendments
On November 5, 2007, CDS implemented technical amendments to its Participant Procedures related to failures-to-receive. The proposed amendments to section 10.1.1 of CDS User Guide entitled Trade and Settlement Procedures are intended further to clarify the circumstances in which a fail-to-receive interest mark will be applied and assessed to a Participant. This interest mark calculation is based on information obtained from the final CNS settlement cycle of the business day.
Since no CNS settlement will be attempted after the final CNS cycle for that day, a delivery of securities after this final CNS cycle will not have any impact on CNS settlement for that day. Thus, a delivery of securities after the final CNS cycle will not invoke an interest mark. Clarification of this timeline was initiated by CDS personnel.
The Procedures marked for the amendments may be accessed at the CDS website at:
http://www.cds.ca/cdsclearinghome.nsf/Pages/-EN-UserDocumentation?Open
[en francais: http://www.cds.ca/cdsclearinghome.nsf/Pages/-FR-Documentation?Open]
B. REASONS FOR TECHNICAL CLASSIFICATION
The amendments proposed pursuant to this Notice are considered technical amendments; they are amendments required to ensure consistency or compliance with an existing rule.
C. EFFECTIVE DATE OF THE RULE
Pursuant to Appendix A ("Rule Protocol Regarding The Review And Approval Of CDS Rules By The OSC") of the OSC Recognition and Designation Order, as amended 1 November, 2006, and Annexe A ("Protocole d'examen et d'approbation des Règles de Services de Dépôt et de Compensation CDS Inc. par l'Autorité des marchés financiers") of AMF Decision 2006-PDG-0180, made effective on 1 November, 2006, CDS has determined that these amendments will be effective on February 4th, 2008.
D. QUESTIONS
Questions regarding this notice may be directed to:
Tony Hoffmann
Legal Counsel
The Canadian Depository for Securities Limited
85 Richmond Street West,
Toronto, Ontario, M5H 2C9
Telephone: 416-365-3768 ; Fax: 416-365-1984
e-mail: attention@cds.ca
JAMIE ANDERSON
Managing Director, Legal
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