Notice of March 2017 Effective Date of Amendments to CDS Fee Schedule for Entitlements & Corporate Action Events Management and ISIN Issuance and CDS Eligibility Services
CDS Clearing and Depository Services Inc. ("CDS") gives notice that regulatory approvals for amendments to CDS's Fee Schedule related to Entitlement and Corporate Action Events Management and ISIN Issuance and CDS Eligibility Services have been granted pursuant to Section 7.6 of Schedule B – Terms and Conditions of the Ontario Securities Commission's ("OSC") Recognition Order, pursuant to Article 26.6 of Recognition Decision 2012-PDG-0142 of the Autorité des marchés financiers du Québec ("AMF"), and pursuant to Section 9 of the British Columbia Securities Commission ("BCSC") Recognition Order, each as amended. The abovementioned amendments will be effective as of Wednesday March 1, 2017.
In addition to the proposed amendments to the fee schedule outlined in the submissions of July 14, 2016, CDS has, in consultation with its regulators, made certain adjustments to the proposed amendments, and their implementation, including the following:
- Entitlement & Corporate Action Event Fees – the transition adjustment period for all securities has been extended and the 50% transition adjustment discount will now be applied effective March 1, 2017 until December 31, 2017. A new 25% transition adjustment discount will apply to transactions effective January 1, 2018 until December 31, 2018. Full fees are then applicable effective January 1, 2019.
- Corporate Debt – the grandfathering has been extended and events related to securities deposited prior to the effective date of March 1, 2017 will not attract fees, up to and including maturity.
- Government Debt – Interest and maturity event management fees for Serial Bonds have been adjusted from $100 to $25 per event and are also subject to applicable transition adjustments and grandfathering.
- ETF Securities – CDS has set up, at no cost, existing SWP and SWITCH programs as corporate action events for the calendar year 2017. Transactions will attract event management fees and are also subject to applicable Entitlement & Corporate Action Event transition adjustment discounts.
The E&CA event management revisions to the CDS fee schedule are:
| Code | Product Description | Billing Definition | Price |
|---|---|---|---|
| 4771 | Event management-MM interest and maturity | Charge per event | $5 - 2017 Transition $7.50 - 2018 Transition $10 - 2019 Full |
| 4772 | Event management-NHA Interest | Charge per event | $5 - 2017 Transition $7.50 - 2018 Transition $10 - 2019 Full |
| 4773 | Event management-NHA Maturity | Charge per event | $5 - 2017 Transition $7.50 - 2018 Transition $10 - 2019 Full |
| 4774 | Event management-Interest | Charge per event | $50 - 2017 Transition $75 - 2018 Transition $100 - 2019 Full |
| 4775 | Event management-Maturity | Charge per event | $50 - 2017 Transition $75 - 2018 Transition $100 - 2019 Full |
| 4776 | Event management-Dividends | Charge per event | $50 - 2017 Transition $75 - 2018 Transition $100 - 2019 Full |
| 4777 | Event management-Mandatory no option | Charge per event | $125 - 2017 Transition $187.50 - 2018 Transition $250 - 2019 Full |
| 4778 | Event management-With choice | Charge per event | $125 - 2017 Transition $187.50 - 2018 Transition $250 - 2019 Full |
| 4779 | Event management-Serial Bond interest and maturity | Charge per event | $12.50 - 2017 Transition $18.75 - 2018 Transition $25 - 2019 Full |
| 4780 | Event management-Paying agent | Charge per event where CDS manages payment release |
$25 - 2017 Transition $37.50 - 2018 Transition $50 - 2019 Full |
| 4781 | Event management -Depositary agent | Charge per event where CDS manages the event as the depositary agent | $50 - 2017 Transition $75 - 2018 Transition $100 - 2019 Full |
The ISIN Issuance and CDS Eligibility revisions to the CDS fee schedule are:
| Code | Product Description | Billing Definition | Price |
|---|---|---|---|
| 4710 | ISIN Issuance – CDS | Standard base price per ISIN or issuer code for each of the items. | $160 |
| 4700 | ISIN Issuance – Standard & Poor's | Standard base price plus S&P pass-through | $268 |
| 4724 | ISIN issuance - Serial Bond Items | Charge for each additional ISIN | $35 |
| 6236 | Security eligibility administration | Charge per eligibility request | $475 |
| 6232 | Certificated BEO Global | Charge per issue represented by a BEO global note and the note is deposited with CDS | $125 |
| 6238 | Eligibility Admin-48 hour late fee | Charge per request received less than 48 but more than 24 hours before the closing date. Effective at 12h01 on closing day (CD) -2. | $2,000 |
| 6237 | Eligibility Admin-24 hour late fee | Charge per request received less than 24 before the closing date. Effective at 00h01 on CD-1. | $5,000 |
| 6239 | Eligibility Admin-closing date late fee | Charge per request received on the closing date. Effective at 00h01 up to 13h00 on CD. Same day requests are not accepted after 13h00 on CD. | $10,000 |
The revised CDS fee schedule will be updated and posted effective March 1, 2017.
Inquiries can be directed to the CDS Relationship Management Team @ cdsrelationshipmgmt@tmx.com
