CDS - Order - s. 144

Order

IN THE MATTER OF

THE SECURITIES ACT

R.S.O. 1990, CHAPTER S.5,

AS AMENDED (the "Act")

AND

IN THE MATTER OF

THE BUSINESS CORPORATIONS ACT

R.S.O. 1990, CHAPTER B.16,

AS AMENDED (the "OBCA")

AND

IN THE MATTER OF

THE CANADIAN DEPOSITORY

FOR SECURITIES LIMITED

 

ORDER

(Section 144 of the Act)

WHEREAS the Ontario Securities Commission (the "Commission") issued an order dated February 25, 1997, which became effective on March 1, 1997, recognizing The Canadian Depository for Securities Limited ("CDS") as a clearing agency pursuant to subsection 21.2(1) of the Act and designating CDS as a recognized clearing agency for the purposes of Part VI of the OBCA (the "1997 Order");

AND WHEREAS the Commission issued an order dated July 12, 2005 pursuant to section 144 of the Act varying and restating the 1997 Order (the "Recognition Order");

AND WHEREAS CDS has applied for an order pursuant to section 144 of the Act to vary certain terms and conditions of the Recognition Order;

AND WHEREAS the Commission has received certain representations from CDS in connection with CDS' application to vary the Recognition Order;

AND UPON the Commission being of the opinion that it is not prejudicial to the public interest to vary the Recognition Order;

IT IS ORDERED pursuant to section 144 of the Act that the Recognition Order be varied as follows:

1. The first sentence of item 3 of Schedule A of the Recognition Order is repealed and replaced by the following:

CDS shall complete the current review of its governance structure and submit for the Commission's consideration a report containing recommendations to amend the governance structure within twelve months from the date of the Recognition Order.

2. Item 19 of Schedule A of the Recognition Order is repealed and replaced by the following:

CDS shall file with Commission staff unaudited quarterly financial statements within 60 days of each quarter end and audited annual financial statements, prepared in accordance with generally accepted accounting principles, within 90 days of each year end. The quarterly and annual financial statements of CDS shall be provided on an unconsolidated and consolidated basis. Any annual report provided to shareholders shall be concurrently filed by CDS with Commission staff.

DATED January 9, 2006

"Susan Wolburgh Jenah"

"David Wilson"