Canadian Depository for Securities Limited and CDS Clearing and Depository Services Inc. – s. 144

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.

VARIATION ORDER (Section 144 of the Act)

WHEREAS the Ontario Securities Commission (Commission) issued an order dated July 4, 2012, as varied and restated on December 21, 2012 and as varied on December 7, 2012, May 1, 2013, June 25, 2013, June 24, 2014, and January 27, 2015 pursuant to section 21.2 of the Act continuing the recognition of The Canadian Depository for Securities Limited (CDS Ltd.) and CDS Clearing and Depository Services Inc. as clearing agencies (the Clearing Agency Recognition Order);

AND WHEREAS CDS Ltd. has filed an application (Application) with the Commission to vary the Clearing Agency Recognition Order pursuant to section 144 of the Act to provide that the annual rebate calculation includes the incremental cost (Base Period) of providing sufficient liquidity facilities to enable the continued operation of CDS's New York Link/DTC Direct Link cross-border service;

AND WHEREAS the Commission has determined based on the Application and representations made by CDS Ltd. that it is not prejudicial to the public interest to vary the Clearing Agency Recognition Order to reflect the inclusion of the Base Period in the rebate model and specify that revenue over and above the Base Period shall be subject to CDS's established rebate model;

IT IS HEREBY ORDERED that, pursuant to section 144 of the Act, Section 3 of Appendix B of Schedule B of the Clearing Agency Recognition Order be deleted and replaced with the following:

"For the fiscal year commencing on November 1, 2012 and subsequent fiscal years starting on January 1, 2013, Maple shall share 50% of any increase in annual revenue on clearing and other core CDS services as compared to annual revenues in the fiscal year ending on October 31, 2012, with Participants, except in the case of the New York Link/DTC Direct Link Liquidity Premium (Liquidity Premium). For the fiscal year commencing on January 1, 2015 and subsequent fiscal years, TMX Group shall also share 50% of any increase in revenues with Participants applicable to the Liquidity Premium compared against the estimated annual revenue of the Liquidity Premium in the fiscal year ending December 31, 2015, and where the estimated annual revenue is equivalent to the annual incremental costs for the increase in the liquidity facility which was $690,000 for fiscal year ending December 31, 2015. Sharing of revenue on core services for any fiscal year shall be paid through one or more of the following methods as may be determined by CDS: an annual adjustment of the quoted fee at the start of that fiscal year, intra-year discount(s) and a year-end proportionate rebate by core service category to Participants (paid pro rata to Participants in accordance with the fees paid by such Participants for such core service)."

DATED at Toronto this 27 day of March, 2015.