Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 2

Securities Systems must allow the option of network access on an interactive basis. They should cope with peak capacity without any service degradation, and have sufficient standby capabilities to recover operations in a reasonably short period within each processing day.

1.	How often, over the last twelve months, has the depository been required to:	CDS operates both a predominantly batch and a real-time system: respectively, the original Securities Settlement Service/Book-based System (SSS/BBS) for debt and equities and the Debt Clearing Service (DCS) for certain forms of debt.
	Change its published settlement timetable?	SSS has two daily settlement cycles; the first on the night of T+2 and the second mid-day on T+3. There have not been changes to settlement timetables nor extensions to opening for input or delays to the beginning of day. DCS was introduced in mid-1994 for Government of Canada bonds. New issues of Government of Canada T-bills were migrated starting in October 1995 and all outstanding issues became eligible by January/February 1996. In September/October 1998, certificated money market issues, including bankers acceptances, commercial paper and bearer deposit notes were also deposited to DCS. The end of day may also be extended to a maximum of 30 minutes as required by the industry to finalize the day's settlement and entitlement obligations.
	Extend the time of opening for settlement input by users?	Never.
	Delay start of day processing?	In DCS, the start of day has been delayed once due to telecommunications disruptions in the Toronto core.
2.	Does the depository operate real time or multiple batch processing for settlement?	SSS settles in batch although preceding trade status updates are performed in real time. DCS also settles in real time with an end-of-day payment exchange at 16:00, Toronto time. A new combined system, targeted for phased-in implementation between now and the end of 2002, will allow real-time processing for all securities.
3.	Does the depository allow interactive communication (on line real time) with its users, enabling settlement input and amendment?	Both SSS and DCS contain online real-time capability for trade entry, updates and amendments.
4.	Has the depository ever failed to recover an outage within the day or failed to start processing runs for a whole day; and, if so, when did that failure arise and what steps have been taken to prevent a similar event in the future?	Never.