Securities Law & Instruments

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 and June 24, 2014 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 CDS Ltd. does not have to provide unaudited quarterly and audited annual financial statements for its dormant wholly-owned subsidiary, CDS INC., to the Commission;

AND WHEREAS Commission staff have been discussing with CDS Ltd. the current process for submitting the financial statements of CDS INC., and how that process might best be made more efficient as CDS INC. is a dormant entity;

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 remove the requirement that CDS Ltd. provide unaudited quarterly and audited annual financial statements of CDS INC. to the Commission, with the objective of maximizing efficiencies;

IT IS HEREBY ORDERED that, pursuant to section 144 of the Act, Section 22.5 of Schedule B of the Clearing Agency Recognition Order is deleted and replaced with the following:

From the fiscal year commencing on January 1, 2013, CDS Ltd. shall file with the Commission (a) unaudited quarterly financial statements of each of its subsidiaries, other than CDS Clearing and CDS INC., within 60 days of the end of quarters one through three of CDS Ltd., and (b) audited annual financial statements of each of its subsidiaries, other than CDS Clearing and CDS INC., within 90 days of the year end of CDS Ltd., all prepared in accordance with CGAAP.

DATED at Toronto this 27 day of January, 2015.

"Deborah Leckman"
"Sarah B. Kavanagh"