On March 27, 2018, CDS Clearing and Depository Services Inc. (“CDS”) amended the secured standby liquidity facility it has maintained since 2014 which provides liquidity to support processing and settlement activities in the event of certain CDS participant defaults.
The amended secured standby liquidity facility increases the facility from US$400 million to US$720 million and allows CDS to increase the amount available by an additional US$600 million with the approval of the lenders. The amendments also permit the facility to be used to support processing and settlement activities in the event of certain additional CDS participant defaults.
Borrowings under this facility are obtained by pledging or providing collateral pledged by CDS participants primarily in the form of debt instruments issued or guaranteed by federal, provincial and/or municipal governments in Canada or US treasury instruments and equity instruments.
As Canada's national securities depository, clearing and settlement hub, CDS supports Canada’s equity, fixed income and money markets.
CDS was advised by a team of Fasken lawyers consisting of Jon Levin and John Elias (banking & finance) and Murray Braithwaite (corporate & research).
The amended secured standby liquidity facility increases the facility from US$400 million to US$720 million and allows CDS to increase the amount available by an additional US$600 million with the approval of the lenders. The amendments also permit the facility to be used to support processing and settlement activities in the event of certain additional CDS participant defaults.
Borrowings under this facility are obtained by pledging or providing collateral pledged by CDS participants primarily in the form of debt instruments issued or guaranteed by federal, provincial and/or municipal governments in Canada or US treasury instruments and equity instruments.
As Canada's national securities depository, clearing and settlement hub, CDS supports Canada’s equity, fixed income and money markets.
CDS was advised by a team of Fasken lawyers consisting of Jon Levin and John Elias (banking & finance) and Murray Braithwaite (corporate & research).
