CDS Rule Amendment Notice - Technical Amendments to CDS Procedures Relating to Institutional Trade Reporting Statistics

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

TECHNICAL AMENDMENTS TO CDS PROCEDURES

INSTITUTIONAL TRADE REPORTING STATISTICS

NOTICE OF EFFECTIVE DATE

A. DESCRIPTION OF THE RULE AMENDMENT

Background

National Instrument 24-101 became effective April 1, 2007 although specific reporting and documentation requirements do not begin until October 1, 2007 for filing in February 2008 by market participants. The proposed amendments to CDS Procedures are intended to ensure compliance with CSA reporting requirements as prescribed for CDS in NI 24-101.

The proposed amendments are also intended to provide participants with reports they can use to meet their own requirements for compliance reporting and to automate the creation of reports to reduce unnecessary staff effort.

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

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

En français: http://www.cds.ca/cdsclearinghome.nsf/Pages/-FR-Documentation?Open

Description of Proposed Amendments

The proposed amendments to the CDS User Guide entitled CDS Reporting Procedures are as follows:

• Section 15 of the User Guide has been modified to clarify the contents and structured of the following reports:

• Institutional Trade Confirmations by Confirming Participant Report

• Institutional Trade Entries by Entry Participant Report

• Institutional Trade Confirmations by Settlement Period Report

• Institutional Trade Entries by Settlement Period Report

B. REASONS FOR TECHNICAL CLASSIFICATION

The amendments proposed pursuant to this Notice are considered technical amendments as they are amendments required to ensure consistency or compliance with an existing rule, securities legislation, or other regulatory requirement.

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 OSC Recognition and Designation Order, as amended 1 November, 2006, and Annexe A ("Protocole d'examen et d'approbation des Règles de Services de Dépôt et de Compensation CDS Inc. par l'Autorité des marchés financiers") of AMF Decision 2006-PDG-0180, made effective on 1 November, 2006, CDS has determined that these amendments will be effective on June 15, 2007.

D. QUESTIONS

Questions regarding this notice may be directed to:

Tony Hoffmann

Legal Counsel

The Canadian Depository for Securities Limited

85 Richmond Street West

Toronto, Ontario M5H 2C9

Telephone: 416-365-3768

Fax: 416-365-1984

e-mail: [email protected]

JAMIE ANDERSON

Managing Director, Legal