CDS Rule Amendment Notice - Technical Amendments to CDS Procedures Relating to Receiver General of Canada - CUID Exemption re $50mm Trade Rule Edit

Market Regulation Document Type
Canadian Depository for Securities Limited (CDS) rule review

CDS CLEARING AND DEPOSITORY SERVICES INC. (CDS®)

TECHNICAL AMENDMENTS TO CDS PROCEDURES

RECEIVER GENERAL OF CANADA - CUID EXEMPTION RE $50MM TRADE RULE EDIT

NOTICE OF EFFECTIVE DATE

A. DESCRIPTION OF THE AMENDMENTS

Background

In September 2007, a new edit limiting the par value amount of a non-exchange debt trade to $50 million, was introduced in CDSX.

An exception to this maximum limit was permitted for Tri-Party trades with the Receiver General of Canada (i.e. repos). These trades were identified by CUID RBCC and internal account T13055391.

The Royal Bank of Canada has now requested that all transactions completed in CUID RBCC be exempt from this edit. Confirmation has been received from the Bank of Canada that (i) RBCC is the settlement CUID for the Receiver General Tri-Party repo transactions, and (ii) that there are more than 20 internal accounts that should be eligible for the exemption, in addition to the one originally specified. Royal Bank has confirmed that the only transactions completed through the RBCC CUID are the above mentioned repo transactions.

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

[http://www.cds.ca/cdsclearinghome.nsf/Pages/-EN-UserDocumentation?Open].

Description of Proposed Amendments

The following procedure will be impacted by this initiative: Trade and Settlement Procedures, Chapter 4 Non-Exchange Trades, Section 4.0 - removal of the reference to the repo internal account T13055391.

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 and administrative practices relating to the settlement services.

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 amended on 1 November, 2006, and Annexe A ("Protocole d'examen et d'approbation des Règles de Services de Dépot 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 March 1, 2008.

D. QUESTIONS

Questions regarding this notice may be directed to:

Eduarda Matos

Legal Counsel

The Canadian Depository for Securities Limited

85 Richmond Street West

Toronto, Ontario M5H 2C9

Telephone: 416-365-3567

Fax: 416-365-1984

e-mail: [email protected]

JAMIE ANDERSON

Managing Director, Legal