CDS Rule Amendment Notice - Technical Amendments to CDS Procedures - New ATON Account Type and Additional ATON File for DTCC

Canadian Depository for Securities Limited (CDS) rule review

CDS CLEARING AND DEPOSITORY SERVICES INC. (CDS®)

TECHNICAL AMENDMENTS TO CDS PROCEDURES

NEW ATON ACCOUNT TYPE AND ADDITIONAL ATON FILE FOR DTCC

NOTICE OF EFFECTIVE DATE



A.       DESCRIPTION OF THE AMENDMENTS

Background

These proposed amendments to the ATON function were raised at the Investment Industry Regulatory Organization of Canada’s (“IIROC”) Financial Administrators Section (“FAS”) Operations subcommittee May 7, 2008. CDS is a participant of FAS Operations subcommittee, and reported on the proposed ATON amendments to the CDS Strategic Development Review Committee (“SDRC”) Equity subcommittee for follow-up and implementation. The SDRC Equity subcommittee approved the following proposed changes to the ATON function on June 10, 2008:

  1. Tax-Free Savings Account:
    A new account type is to be introduced in ATON, the Tax-Free Savings Account. This account type will be designated as "TFSA".
  2. DAYDOS (A term used by the Depository Trust and Clearing Corporation (“DTCC”) to describe their Daytime Deliver Orders file) Account Transfer:
    A second DTCC DAYDOS account transfer file will be sent to DTCC intraday, containing completed transfer activity for the current business day that was not included in the morning file (that was delivered at approximately 7:30 a.m.). All activity completed after the delivery of the morning file and prior to 3:00 p.m. the same day will be included on this new second file. Any activity completed after 3:00 p.m. will be provided on the next day's morning file.


In addition to the changes described above, a correction is being made to the table in Section 6.1 of the ATON User Guide in reference to locked-in legislation. The correct code to be entered by ATON users is “FED” not “CAN”, and it is in reference to the Federal Government of Canada.

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:

ATON User Guide:

  • Chapter 1 Introduction to ATON, Section 1.2
  • Chapter 6 Field Values, Section 6.1


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