CDS Clearing and Depository Services Inc ASLF – 2016 Fran Daly Managing Director, Business Development 1

Agenda A.Key Initiatives –Industry Sponsored –Technology Developments B.Risk Management –Business Continuity –Recovery & Resolution C.Market Overview –Market Size –Operational Statistics –Market Stability 2 TMX/CDS Confidential and Proprietary

A. Key Initiatives  Industry Sponsored Initiatives –Account Transfer System Enhancements (ATON)  RESP Beneficiary details  GIC Automated Numbering System  Book Costs recording –Conversion to DTC Standard ISO format messaging –Web based Reporting Solution –1042-S Modifications (FATCA) –Due Bill Tracking enhancements  Technology Developments –Integrated Security Management Solutions –Issuer Service Program –Next generation Clearing and Settlement System 3 TMX/CDS Confidential and Proprietary

B. Risk Management  PFMI compliance completed in 2015 –Procyclicality –Default Simulation –Leveraged use of collateral –Liquidity facilities –Business Continuity  System recovery within two (2) hours of incident occurrence  Additional risk related changes in 2016 –CNS change to timing of novation (Value Date-1) 4 TMX/CDS Confidential and Proprietary

B. Risk Management  Recovery & Resolution –Phase I: Completed December 2015  Regulatory expectations defined –Critical services –Stress Scenarios –Triggers for recovery tools –Phase II: Completion expected December 2016  Recovery plan approval  One recovery plan addressing each of the critical services –Resolution  Will be addressed in TMX/CDS Confidential and Proprietary

C. Market Overview  Participating organizations (“participants”)  Links with exchanges & ATS’s, The Depository Trust & Clearing Corporation, Canadian Payments Association  Interfaces with transfer, paying, redemption agents and issuers  Information services available to others  Links with service bureaus TMX/CDS Confidential and Proprietary CDS has 100 clearing members CDS Clearing Members Breakdown (total = 100)Types of clearing relationships 6

7 C. Market Overview TMX/CDS Confidential and Proprietary Number of eligible ISINs (000s) (14 Months) 2012 (12 Months) Strip bonds Debt Equity Money market Total

C. Market Overview Value on deposit ($billions) (14 Months) 2012 (12 Months) Debt2,0042,1382,2942,487 2,5362,670 Equity1,3011,5721,6361,644 1,8051,951 Total3,3053,7103,9294,131 4,3404,621 8TMX/CDS Confidential and Proprietary

C. Market Overview Volume of domestic trades (millions of trades) (14 Months)2012 (12 Months) Exchanges OTC/non- exchange Total TMX/CDS Confidential and Proprietary9

C. Market Overview Number of entitlements processed (000s) (14 Months) 2012 (12 Months) Interest Dividend Corporate events Money market Total TMX/CDS Confidential and Proprietary 10

C. Market Overview Value of entitlements processed ($billions) (14 Months) 2012 (12 Months) Money Market3,3572,4882,5473,3322,8652,9392,759 Other entitlements * Interest Dividends Corporate Events Total3,6672,7882,8893,8013,2603,3543,202 * These values only capture corporate events involving cash transactions TMX/CDS Confidential and Proprietary 11

12 The Future TMX/CDS Confidential and Proprietary Examples of potential collaboration Equities CDCC Shorcan CDS Participating Organizations Transfer Agents Custodians PO Back Offices InvestorsIssuers CDCC CURRENT SCOPE POTENTIAL SCOPE Equities Datalinx Razor Risk Expand product offering, working closely with its TMX partners

13 QUESTIONS ??