Technical Amendments to CDS Rules - Reporting Procedures

THE CANADIAN DEPOSITORY FOR SECURITIES LIMITED

TECHNICAL AMENDMENTS TO CDS RULES

REPORTING PROCEDURES

NOTICE OF COMMISSION APROVAL

A. Description of the Rule Amendment

The amendments described in this Notice relate to changes to reports generated by The Canadian Depository for Securities Limited ("CDS"), for the benefit of its Participants, as described in the CDS Reporting Procedures.

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

There are a number of changes to the CDS Reporting Procedures:

• CDS has added a new report to the list of reports it generates. The new report is referred to as the "CDS Expiry Date -- Upcoming Events List Report" and is described in Section 13.2 of the CDS Reporting Procedures. This report will be available daily, at the beginning of each day and will list voluntary events, mandatory events with options and distribution events with expiry events:

• on the current day,

• on the day after the current day, and

• five days after the current day.

• Amended Section 13.3 of the CDS Reporting Procedures describes the Claims Report (the Claims Report was previously described in Section 13.2). The amendments will more accurately describe the form of the Claims Report. The Claims Report shall list claim transactions for positions in the event's base security on:

• the record date and/or the due bill redemption date (if applicable); and

• the business day before the payable date, for interest event payments.

• Section 24.2 has been amended to delete the reference to "pledges deleted by users" in the Deleted Transaction Report. These amendments reflect the fact that Participants will not longer be able to delete pledges on CDS systems but will instead be able to remove positions from the pledge account when the pledge arrangements have expired. 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 the inadvertent deletion of pledges in error.

• In addition the Report ID numbers, set out in the chart at the beginning of Chapter 11 of the CDS Reporting procedures, for the "Unconfirmed Withdrawals Report -- Instant" and the "Unconfirmed Withdrawals Report -- Regular" have been changed to correct an error in the current reference.

• In addition applicable amendments to Section 1.2 of the CDS Reporting Procedures have been made to reflect the amendments described above.

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]