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CDS Clearing and Depository Services Inc. (CDS®)

TECHNICAL AMENDMENTS TO CDS PROCEDURES

WR 1185 – Add security value to Deposit & Withdrawal reports

NOTICE OF EFFECTIVE DATE
May 31, 2010



A. DESCRIPTION OF THE CDS PROCEDURE AMENDMENTS

Background

WR1185 -- Add security value to Deposit & Withdrawal reports

CDS provides various reports for security deposit or withdrawal requests entered by the participants. These reports contain information on securities deposited to and withdrawn from CDSX (such as Custodian CUID, Window Location, Total number of securities withdrawn or deposited etc). There is no information about the total dollar value of the securities on the reports, which is important for participants when assessing the liability associated with the transaction.

All of the reports noted below will have a column added to display the Canadian dollar value of the securities being deposited or withdrawn. The value will be calculated using the current CDSX benchmark price times the par value of the deposit or withdrawal transaction.

    • Unconfirmed Withdrawals Report -- Regular (000052)

    • Unconfirmed Withdrawals Report - Instant (000053)

    • Unconfirmed Deposits Report -- Instant (000283)

    • Unconfirmed Deposits Report -- Regular (000284)

    • Unconfirmed Withdrawals Report -- Internal to CDS only (000111)

    • Security Deposit Notice (000014)

    • Security Withdrawal Notice (000015)

Description of Proposed Amendments

Access the proposed amendments to the CDS Procedures on the User documentation revisions web page (http://www.cds.ca/cdsclearinghome.nsf/Pages/-EN-blacklined?Open) and to the CDS Forms (if applicable) on Forms online (Click View by Form Category and in the Select a Form Category list, click External review) on the CDS Services web page (www.cdsservices.ca).

A small housekeeping change is required to identify four reports as Custodian reports:

    • CDS Reporting Procedures (Release 6.0)

    Ch 11: Deposit and Withdrawal Reports

    s 11.8, 11.9, 11.10, 11.11

CDS Procedure Amendments are reviewed and approved by CDS's Strategic Development Review Committee ("SDRC"). The SDRC determines or reviews, prioritizes and oversees CDS-related systems development and other changes proposed by participants and CDS. The SDRC's membership includes representatives from the CDS Participant community and it meets on a monthly basis.

These amendments were reviewed and approved by the SDRC on April 29, 2010.

B. REASONS FOR TECHNICAL CLASSIFICATION

The amendments proposed pursuant to this Notice are considered matters of a technical nature in routine operating procedures & administrative practices relating to CDS settlement services.

C. EFFECTIVE DATE OF THE CDS PROCEDURE AMENDMENT

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 November 1, 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 November 1, 2006, CDS has determined that the proposed amendments will become effective on a date subsequently determined by CDS, and as stipulated in the related CDS Bulletin.

D. QUESTIONS

Questions regarding this notice may be directed to:

Laura Ellick

Manager, Business Systems

Business Systems Development & Support

CDS Clearing and Depository Services Inc.

85 Richmond Street West

Toronto, Ontario M5H 2C9

Telephone: (416) 365 - 3872

Email: lellick@cds.ca