1. ACSDA Leadership Forum CDS International Links

2. 2 Overview Drivers for Access to Foreign Markets International Strategy Canada - U.S. Links/Services DTC Canadian Dollar Settlement Service JASDEC Link SEB Link Euroclear France Link Euroclear UK Direct Service International Message Hub Possible future links

3. 3 Drivers for Access to Foreign Markets Canadian issuers seeking cheaper, more liquid financing sources Elimination of foreign property rule in 2005 has increased Canadian investor interest in foreign investments Canada’s strong economy and global demand for natural resources has made Canadian companies and markets attractive destinations for foreign investment Increased interest in dual listing of Canadian companies and foreign companies in Canada Cost effective way for CDS participants to access foreign markets

4. 4 International Strategy Sponsor individual participant accounts with the central depository in the target market Establish a bilateral depository-to-depository link Will pursue an unilateral link, provided that it will be of sufficient value to participants

5. 5 Canada - U.S. Links/Services New York Link DTC Direct Link CDS-DTC Cross-Border Movement Service U.S. Deposit/Withdrawal Service

6. 6 New York Link Established in 1985 CDS sponsors participant membership with NSCC and DTC (participant has their own accounts at NSCC/DTC) Allows CDS participants to interact directly with NSCC/DTC participants CDS participants have access to all of the products/services offered by NSCC, DTC and OMGEO that are available to U.S. participant CDS sponsored participants are subject to same risk controls as U.S. participants CDS act as guarantor backed by auditing of sponsored participants

7. 7 DTC Direct Link Established in 1995 CDS sponsors participant membership with DTC (participant has their own account at DTC) Allows CDS participants to interact directly with DTC participants CDS participants have access to all of the products/services offered by DTC and OMGEO that are available to U.S. participants CDS sponsored participants are subject to same risk controls as U.S. participants with CDS as guarantor

8. 8 CDS-DTC Cross-Border Movement Service Facilitates deliveries of security positions to or from accounts at DTC and CDS (U.S. and Canadian securities) Uses CDS’s omnibus account at DTC Securities eligible in CDS’s and DTC’s systems Delivery instructions are exchanged using SWIFT- like messages over a dedicated network Used for inventory movements and to facilitate the settlement of trades Service available to all CDS and DTC participants

9. 9 U.S. Deposit/Withdrawal Services Adopted in 1997 (CDS-West Canada merger) Uses CDS’s omnibus account at DTC Allows CDS participants to deposit/withdraw U.S. securities directly to/from their CDS ledger CDS coordinates the deposit/withdrawal processes on behalf of CDS participants with DTC and U.S. transfer agents Service available to all CDS participants

10. 10 DTC CAD Settlement Service Implemented in 2005 DTC service Utilizes DTC’s omnibus account at CDS CDS’s system used to facilitate settlement activities Allows settlement to occur between CDS and DTC participants against CAD Specific Canadian securities eligible for service

11. 11 JASDEC Link Implemented in 1985 (JSCC) Unilateral link - JASDEC has an omnibus account at CDS Facilitates deliveries of security positions between CDS and JASDEC Delivery instructions/information exchanged using ISO15022 compliant SWIFT messages

12. 12 Euroclear France Link Implemented in 1988 (SICOVAM) Unilateral link - CDS has an omnibus account at Euroclear France Facilitates deliveries of security positions between CDS and Euroclear France Delivery instructions/information sent by CDS via ISO15022 compliant SWIFT messages but instructions/information received from Euroclear- France are not ISO15022 compliant

13. 13 SEB Link Implemented in 2001 Unilateral link - CDS has an omnibus account at SEB (custodian bank in Sweden) Facilitates deliveries of security positions between CDS and SEB Delivery instructions/information exchanged using ISO15022 compliant SWIFT messages

14. 14 Euroclear UK Direct Service Implemented in August 2007 CDS participants become members of Euroclear UK & Ireland under the sponsorship of CDS CDS provides Canadian participants direct access to the Euroclear UK & Ireland GUI interface via SWIFT network Allows Canadian participants to trade and settle directly with Euroclear UK & Ireland counterparties Limited use of SWIFT ISO 15022 messaging to be expanded

15. 15 International Message Hub Implemented in 2006 Manages processing of deliveries related to the JASDEC, Euroclear France, and SEB links Little or no manual intervention required (STP) Prior to its implementation delivery instructions/information were processed manually Can accommodate new links and bilateral links

16. 16 Possible Futures Links Future possible links: –Markets with interlistings of Canadian companies such as energy and resource companies –Other large investment markets of interest to participants