CDS Rule Amendment Notice - Technical Amendments to CDS Procedures Relating to Constrained Entitlements

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

CDS CLEARING AND DEPOSITORY SERVICES INC. (CDS®)

TECHNICAL AMENDMENTS TO CDS PROCEDURES

CONSTRAINED ENTITLEMENTS

NOTICE OF EFFECTIVE DATE

A. DESCRIPTION OF THE RULE AMENDMENT

Background

On January 23, 2007, CDS submitted a Notice of Material Amendment to CDS Rules relating to Constrained Entitlements. Pending regulatory approval, the effective date of these material amendments will be April 9, 2007. The proposed technical amendments are made as a consequence of the aforementioned amendment to CDS Participant Rules.

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

In English: http://www.cds.ca/cdsclearinghome.nsf/Pages/-EN-070305blacklined?Open

En français: http://www.cds.ca/cdsclearinghome.nsf/Pages/-FR-061117modifications?Open

Description of Proposed Amendments

In the CDSX Procedure and User Guide, Chapter 8 -- Entitlement Activities, the proposed amendments add a note reminding CDSX Participant users that they are responsible for any action pertaining to rights that they have received on behalf of beneficial holders who are ineligible to participate in the Rights Offering ("Ineligible Unitholder").

B. REASONS FOR TECHNICAL CLASSIFICATION

The amendments proposed pursuant to this Notice are considered technical amendments as they are consequential amendments intended to implement a material rule that has been published for comment and contain only material aspects already contained in the material rule and disclosed in the notice accompanying that material 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 April 23, 2007.

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]

JAMIE ANDERSON

Managing Director, Legal