Recommendation 1 Recommendation 2 Recommendation 3 Recommendation 4

Recommendation 5 Recommendation 6 Recommendation 7 Recommendation 8

Market selection

Recommendation 6

Convergence of Securities Systems, both within countries and across borders, should be encouraged where this eliminates operational risk, reduces cost and enhances market efficiency.

1.	Is the depository linked electronically and in real time with other segments of the core market infrastructure (e.g. trading platforms, netting systems, matching platforms, payment systems)?	The trading platforms or service bureaus employed by participants link in real-time or in batch to the depository depending on the sophistication of the participant. In SSS, files are transmitted within scheduled timeframes. In DCS, there is real-time, intraday, trade-for-trade messaging capability.
2.	Is there one or more depository or settlement system in the market?	Yes. CDS settles all equities and debt and also exchange-traded derivatives. The Canadian Derivatives Clearing Corporation (CDSS) settles non-exchange-traded derivatives and FundSERV settles mutual fund trades.
3.	If there are several, has a consolidation been considered? If yes, by when?	The two securities depositories in Canada merged into one on October 31, 1996. No consolidation is currently planned with the clearing corporations for derivatives and mutual funds, however, the organisations share some services for efficiency gains.
4.	Does (do) the securities system(s) allow other domestic or foreign systems to establish direct links on an equal basis to local members?	Yes - a number have been accepted as CDS participants, including Depository Trust Company, Euroclear France (formerly SICOVAM), and the Japanese Securities Clearing Corporation (JSCC).
5.	Does (do) the securities system(s) allow foreign market participants to become direct participants?	Yes.