OSC Staff Notice of Request for Comment – Proposed Significant Change to Eliminate CDS Fee Rebates and Proposed Amendments to Eliminate Network Connectivity Fees and to Eliminate Report File Transmission Fees – CDS Clearing and Depository Services Inc. (CDS)

 
The Ontario Securities Commission is publishing for a 30 day public comment period a revised proposal of significant changes to the CDS fee model. In response to feedback received, CDS has made changes resulting in this amended proposal and withdrew the original application published on December 19, 2019.

Consistent with the original application, the revised proposal would eliminate the two CDS fee rebates. The revised proposal would also eliminate network connectivity fees and fees charged for report file transmissions (collectively, the Amendments).

Details of the proposed Amendments are as follows:

• the permanent elimination of the two fee rebates (50/50 rebate and fixed rebate) that are paid annually to participants on a pro-rata basis based on their use of certain CDS services. Rebates would be eliminated only after the post-trade modernization project goes live;
• the permanent elimination of network connectivity fees currently paid by participants; and
• the elimination of fees charged for report file transmissions for reports that are generated by CDS at the request of participants.

The comment period ends March 29, 2021.

A copy of the CDS Notice is published on our website at www.osc.ca.