CDS Rule Amendment Revised Notice – Technical Amendments to CDS Procedures – Pledge: Changes to RMS 171 and 172 Security Loan Item Reports

CDS CLEARING AND DEPOSITORY SERVICES INC. (CDS^®)

TECHNICAL AMENDMENTS TO CDS PROCEDURES

PLEDGE: CHANGES TO RMS 171 AND 172 SECURITY LOAN ITEM REPORTS

REVISED NOTICE OF EFFECTIVE DATE

 

A. DESCRIPTION OF THE AMENDMENTS

Background

A participant working group was convened in 2007 to review the existing entitlement claims processing on Pledge items. This was one of the initiatives approved by the CDS Strategic Development Review Committee ("SDRC") Debt subcommittee, and the changes that are required to the existing reports, are as follows:

RMS171 - Security Loan Items - Entitlement Details Report

• include the submitter/receiver internal account numbers

• include summary lines that report the total value of loan claims by event, and a total for all events

RMS172 - Security Loan Items - Upcoming Entitlements Report

• include the submitter/receiver internal account numbers

• provide a record date + 1 version

The Procedures marked for the amendments may be accessed at the CDS website at:

http://www.cds.ca/cdsclearinghome.nsf/Pages/-EN-UserDocumentation?Open

Description of Proposed Amendments

The following procedure have been impacted by this initiative:

• CDS Reporting Procedures, Chapter 13 Entitlement Reports, Security Loan Items -- Entitlement Details report, Sections 13.19 and 13.20

B. REASONS FOR TECHNICAL CLASSIFICATION

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

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 Recognition and Designation Order, as amended on 1 November, 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 1 November, 2006, CDS had originally determined that these amendments would be effective on May 5, 2008. The original submission for regulatory review was made on March 28, 2008 and the original Notice was published by the OSC on April 18, 2008 and by the AMF on May 2, 2008. However, to accommodate the removal of the Suppress Auto Claim item from the "Other Pledge Items" initiative, and to allow for testing of the remaining initiatives of the CDS package of proposed procedural amendments, the implementation date had to be postponed to May 12, 2008.

These amendments were reviewed and approved by the CDS SDRC on March 27, 2008.

D. QUESTIONS

Questions regarding this notice may be directed to:

Eduarda Matos

Legal Counsel

The Canadian Depository for Securities Limited

85 Richmond Street West

Toronto, Ontario M5H 2C9

Telephone: 416-365-3567

Fax: 416-365-1984

e-mail: [email protected]

JAMIE ANDERSON

Managing Director, Legal