CDS Rule Amendment Notice — Technical Amendments to CDS Procedures - NCS Restriction on Items per Event Option

Market Regulation Document Type
Canadian Depository for Securities Limited (CDS) rule review

CDS CLEARING AND DEPOSITORY SERVICES INC. (CDS®)

TECHNICAL AMENDMENTS TO CDS PROCEDURES

NCS RESTRICTION ON ITEMS PER EVENT OPTION

NOTICE OF EFFECTIVE DATE



A.       DESCRIPTION OF THE AMENDMENTS

Background

The proposed amendment is a production support item, a change to the internal NCS Entitlement system to prevent a Securities Information and Entitlement Services user from entering more than 99 items for a single option on a corporate action event. This item came about as a result of a subscriber to the 7041 Entitlement file receiving data that they could not process when the three digit item number entered in NCS (e.g. 102) was truncated to a two digit number on the file (02) and was viewed as a duplication of the item originally entered as 002. This change is purely an internal change to the entitlement client server application and has no impact on CDS Participants. This change is being made to CDS’ own internal system so that subscribers to the file do not have to change anything at their end.

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

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



Description of Proposed Amendments

The following procedures will be impacted by this initiative:

CDSX Procedures and User Guide:

  • Chapter 8 Entitlement Activities, Section 8.2.3


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 November 1, 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 November 1, 2006, CDS has determined that these amendments will become effective on a date subsequently determined by CDS, and as stipulated in the related CDS Bulletin.

These amendments were reviewed and approved by the SDRC on September 25, 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