Technical Amendments to CDS Rules - Procedures for Participating in CDS Services

THE CANADIAN DEPOSITORY FOR SECURITIES LIMITED

TECHNICAL AMENDMENTS TO CDS RULES

PROCEDURES FOR PARTICIPATING IN CDS SERVICES

NOTICE OF COMMISSION APPROVAL

A. Description of the Rule Amendment

The amendments described in this Notice describe changes to The Canadian Depository for Securities Limited's ("CDS") ECHO service.

The procedures marked for the amendments may be accessed at the CDS website at http://www.cds.ca.

Specifically, the amendments to Section 6.8 of the "Participating in CDS Services" manual describe changes to CDS's ECHO service. The changes described in this section of the Participant Rules will provide Participants with specific information in relation to pledges, exchange trades and off-exchange trades.

Currently the ECHO service provides information to facilitate trade and ledger management by CDS Participants. CDS is upgrading ECHO application so that it will also facilitate the management of trades which occur off-exchange and pledges. The amendments describe the changes to the ECHO application.

In addition Section 7.3 of the "Participating in CDS Services" manual has been amended to delete the reference to manually deleting or canceling pledge, deposit or withdrawal transactions when closing out outstanding CDSX transactions. This change is necessary as a result of amendments to CDS systems which preclude CDS Participants from canceling or deleting positions manually. Instead Participants will be able to move positions from accounts and all such accounts without a position in them will be automatically purged by CDS without any action required by the Participants involved. These changes will prevent the inadvertent deletion of positions in error.

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. The implementation of the amendments to the Procedures described above will have no significant impact on the systems or operations of a Participant and will not result in Participant systems changes.

C. Effective Date of the Rule

The effective date for these amendments is November 7, 2005.

D. Questions

Questions regarding this notice may be directed to:

Michael Brady,

Senior Legal Counsel,

The Canadian Depository for Securities Limited,

85 Richmond Street West,

Toronto, Ontario M5H 2C9

Telephone: 416-365-8395

Fax: 416-365-1984

e-mail: [email protected]