The Canadian Depository for Securities Limited and CDS Clearing and Depository Services Inc. – s. 147
IN THE MATTER OF THE SECURITIES ACT, R.S.O. 1990, c. S.5, AS AMENDED (Act) AND IN THE MATTER OF THE CANADIAN DEPOSITORY FOR SECURITIES LIMITED AND CDS CLEARING AND DEPOSITORY SERVICES INC.
EXEMPTION ORDER (Section 147 of the Act)
WHEREAS the Ontario Securities Commission (Commission) issued an order dated July 4, 2012 pursuant to section 21.2 of the Act, as varied and restated on December 21, 2012 and as varied on December 7, 2012, May 1, 2013, June 25, 2013 and June 24, 2014 continuing the recognition of The Canadian Depository for Securities Limited (CDS Ltd.) and CDS Clearing and Depository Services Inc. (CDS Clearing) (CDS Ltd and CDS Clearing collectively CDS) as clearing agencies (the Clearing Agency Recognition Order);
AND WHEREAS section 10.2(b) of Schedule "B" of the Clearing Agency Recognition Order requires CDS to conduct a self-assessment against the applicable CPSS-IOSCO Principles for Financial Market Infrastructures (PFMIs) every two years or as requested by the Commission, and prepare a report on the findings, conclusions and recommendations for rectifying any deficiencies and to provide the written report to its board of directors (Board) promptly after the report's completion and then to the Commission within 30 days of providing it to its Board (Reporting Requirement);
AND WHEREAS CDS is required to comply with the Reporting Requirement by August 1, 2014 (2014);
AND WHEREAS CDS has filed an application (Application) with the Commission for an exemption from complying in 2014 with the Reporting Requirement pursuant to section 147 of the Act;
AND WHEREAS CDS has completed its first self-assessment against the PFMIs and provided the self-assessment to the Commission and provided summaries of the self-assessment to the Board;
AND WHEREAS CDS has regularly reported and will continue to report on its progress with respect to its remediation plans relating to any deficiencies regarding the PFMIs to the Board and the Commission;
AND WHEREAS based on the Application and the representations that CDS has made to the Commission, the Commission has determined that it would not be prejudicial to the public interest to exempt CDS from complying with the Reporting Requirement in 2014;
IT IS HEREBY ORDERED that pursuant to section 147 of the Act, CDS is exempted from complying with the Reporting Requirement in 2014 pursuant to section 10.2(b) of Schedule "B" of the Clearing Agency Recognition Order.
DATED this 29th day of July, 2014.