CMS and IRMS Changes and Technical Amendments to CDS Rules - CMS and IRMS Changes

THE CANADIAN DEPOSITORY FOR SECURITIES LIMITED

TECHNICAL AMENDMENTS TO CDS RULES

CMS AND IRMS CHANGES

NOTICE OF COMMISSION APPROVAL

A. Description of the Rule

The amendments proposed pursuant to this Notice concern Collateral Management System ("CMS") and Internal Risk Management System ("IRMS") changes.

The procedures marked for the proposed amendments may be accessed at the CDS website at http://www.cds.ca/cdshome.nsf/Pages/-EN-Documentation?Open.

Specifically, these amendments address the following:

1. Section 13.1.5 (Valuation of contributions) of Participating in CDS Services (Release 2.4) has been revised to clarify that foreign exchange risk is not included when US securities are pledged to a US dollar pool but is included when Canadian securities are pledged to a US dollar pool.

B. Reasons for Technical Classification

The amendments proposed pursuant to this Notice are considered technical amendments. These amendments concern matters of a technical nature in routine operating procedures and administrative practices relating to settlement services or are amendments pertaining to stylistic formatting.

C. Effective Date of the Rule

The effective date for these amendments is August 8, 2005.

Questions

Questions regarding this notice may be directed to:

Toomas Marley,

Vice-President, Legal and Corporate Secretary,

The Canadian Depository for Securities Limited,

85 Richmond Street West,

Toronto, Ontario M5H 2C9

Fax: 416-365-1984

e-mail: [email protected]