CDS Rule Amendment Notice - Technical Amendments to CDS Rules Relating to the USTA

THE CANADIAN DEPOSITORY FOR SECURITIES LIMITED (CDS)

TECHNICAL AMENDMENTS TO CDS RULES

RELATING TO THE USTA

NOTICE OF EFFECTIVE DATE

A. DESCRIPTION OF THE PROPOSED AMENDMENTS

The proposed amendments to the CDS Participant Rules are intended to ensure that CDS Participant Rules conform to new provincial legislation governing securities holdings and transfers through a clearing agency. A number of provinces have passed legislation to implement the principles of the Uniform Securities Transfer Act ("USTA") adopted by the Uniform Law Conference. The Ontario legislation, which is expected to be implemented in January 2007, includes the Securities Transfer Act, 2006 and amendments to the Personal Property Security Act and the Business Corporations Act. British Columbia and Alberta have passed substantially similar legislation.

The CDS Participant Rules marked for the proposed amendments may be accessed at the CDS website at:

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

B. REASONS FOR TECHNICAL CLASSIFICATION

The amendments proposed pursuant to this Notice are considered technical amendments as they are required to ensure consistency or compliance with securities legislation and other regulatory requirements.

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 varied and restated, these amendments are expected to become effective on January 01, 2007.

D. QUESTIONS

Questions regarding this notice may be directed to:

Jamie Anderson

Senior Legal Counsel

The Canadian Depository for Securities Limited

85 Richmond Street West

Toronto, Ontario M5H 2C9

Fax: 416-365-1984

e-mail: [email protected]