CDS Rule Amendment Notice - Technical Amendments to CDS Procedures - Data Expansion

THE CANADIAN DEPOSITORY FOR SECURITIES LIMITED ("CDS")

TECHNICAL AMENDMENTS TO CDS PROCEDURES

DATA EXPANSION

NOTICE OF EFFECTIVE DATE

A. DESCRIPTION OF THE RULE AMENDMENT

Background

As part of the ongoing effort to improve the efficiency of its services, CDS has undertaken a project which will make the information it gathers in respect of entitlements information available to participants on more a timely and extensive basis. Participants will be able to use the information for both notification, and processing and to eliminate their data gathering and scrubbing processes. The first stage in the project is the expansion of the data currently available within CDS' corporate action events and the initiation of an online calendar function.

CDS consulted with several of its entitlement information customers to identify the specific requirements for CDS entitlement information quality improvements in the areas of timeliness, accuracy, security coverage and event completeness.

The information to be included in the corporate actions events and in the online calendar is currently already available to CDS Participants in other forms and in other locations; the first stage in the project, which the proposed amendments address, adds certain data elements to relevant entitlement events, allows Participants to view events in CDSX in 'Anticipated' or 'Unconfirmed' status, and entails the creation of a mainframe real-time event calendar screen.

The Procedures marked for the amendments may be accessed on the CDS website at:

http://www.cds.ca/cdshome.nsf/Pages/-EN-Documentation?Open

Description of Proposed Amendments

The proposed amendments to the procedures reflect the additional functionality outlined below:

The new functionality is for information purposes only, and will not affect the current processing of Corporate Action events (e.g. event confirmation, calculations, payments, conversion, claims etc).

1. Additional Data Elements

The following new data elements will be added to all relevant Corporate Action events:

• Multiple Ex-Dividend Dates on distribution type events

• Effective Date on mandatory type events

• Remaining Principal Balance Factor (RPF) on NHA related events

• Stock Price on security-receive type events

Changes will not be required to Outbound InterLink messages or any other Outbound ACI file.

2. Event Level Status Additions

The proposed amendments will enable CDS to make Entitlement events with the Event Level statuses of 'Anticipated' and 'Unconfirmed' available for Participant viewing in CDSX.

3. Online Calendar

The proposed amendments will provide participants with an online calendar of real-time information on upcoming events. Participants will be able to sort and print the displayed event information.

B. REASONS FOR TECHNICAL CLASSIFICATION

The amendments proposed pursuant to this Notice are considered technical amendments as they are matters of a technical nature in routine operating procedures relating to the provision of entitlements information. Neither CDS' Participants nor the Canadian capital markets will be materially affected by these changes. Further, it is CDS' view that the provision of additional data for informational purposes alone constitutes only a change to administrative practices relating to the provision of entitlements information.

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 Recognition and Designation Order, as varied and restated on July 12, 2005, these amendments will be made effective on August 14, 2006.

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: [email protected]