Register today for OSC Dialogue 2024: Inviting, thriving and secure capital markets
CDS Rule Amendment Notice -- Technical Amendments to CDS Procedures Relating to Issuer Code Warning Report
CDS CLEARING AND DEPOSITORY SERVICES INC. (CDS®)
TECHNICAL AMENDMENTS TO CDS PROCEDURES
ISSUER CODE WARNING REPORT
NOTICE OF EFFECTIVE DATE
A. DESCRIPTION OF THE RULE AMENDMENT
Background
The proposed amendments were made at the request of the CDS Strategic Development Review Committee ("SDRC") Debt & Equity subcommittee. The issue was raised by a Participant who experienced problems when an Issuer Code used to issue Commercial Paper ran out of available ISIN combinations. The SDRC request was to provide a report to Participants whichprovided a flag when a Participant reached 80% of the available ISIN combinations for a given Issuer Code provided a flag when a Participant reached 80% of the available ISIN combinations for a given Issuer Code. A change will also be made to the existing Eligible Issuer Codes report (RMS156) to provide Issuer Agents with a version of the report which identifies only those of their own issuer codes which are within a 20% threshold of the remaining available ISINs. This new report can be used by Participants to monitor the need to request new money market Issuer Codes.
The Procedures marked for the amendments may be accessed on the CDS website at:
http://www.cds.ca/cdsclearinghome.nsf/Pages/-EN-UserDocumentation?Open
[en francais: http://www.cds.ca/cdsclearinghome.nsf/Pages/-FR-Documentation?Open]
Description of Proposed Amendments
The proposed amendments to the CDS User Guide entitled CDS Reporting Procedures include:
• the addition of an "Issuer Code Warning Report" (Report #000174), which provides details in respect of Issuer Codes and if such Issuer Codes have used more than 80% of their available ISIN numbers in the course of issuance of Money Market instruments.
The proposed amendments to the CDS User Guide entitled Money Market Issue & Entitlement Procedures include:
• At section 2.1, the addition of a paragraph outlining how an issuer code will be flagged when only 20% of available ISIN combinations remain for that issuer code.
• At section 3.1, the addition of a paragraph outlining how an issuer code will be flagged when only 20% of available ISIN combinations remain for that issuer code.
B. REASONS FOR TECHNICAL CLASSIFICATION
The amendments proposed pursuant to this Notice are considered technical amendments; they are matters of a technical nature in routine operating procedures and administrative practices relating to the settlement services (3(a)(i)).
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 August 13, 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