Technical Amendments to CDS Rules - CNS and ACCESS

THE CANADIAN DEPOSITORY FOR SECURITIES LIMITED

TECHNICAL AMENDMENTS TO CDS RULES

CNS AND ACCESS

NOTICE OF COMMISSION APPROVAL

A. Description of the Rule

The amendments proposed pursuant to this Notice concern the calculation of collateral for CNS and ACCESS participant funds.

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 15.6 (Calculating the IRMS collateral requirement) of Participating in CDS Services (Release 2.4) has been revised to indicate a new calculation basis for collateral. IRMS means the CDS Internal Risk Management System. The new formula incorporates the diversification benefits between the outstanding position component and the mark-to-market component.

B. Reasons for Technical Classification

The amendments proposed pursuant to this Notice are considered technical amendments. These amendments are consequential amendments intended to implement a material rule that has been delivered to the OSC for consideration.

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]