DTCC’s Canadian-Link Services with the CDS Clearing and Depository Services Inc. (CDS) provide a broad range of services supporting settlement and corporate actions including dividend, redemption and reorganization services.
Launched in 2005, the Canadian-Link Services initially supported the processing and settlement of transactions in Canadian dollars at The Depository Trust Company, (DTC), a DTCC subsidiary. This eliminated problems associated with maintaining split inventories in Canadian and U.S. securities and enabled customers to concentrate all U.S. and Canadian security positions in their DTC accounts.
In 2008, services were expanded to include new processing capabilities for income, redemption and corporate actions payments with the aim of providing “one-stop” shopping for DTC customers. The new services will include dividends, redemptions, including full call, and maturities excluding municipal event types, and reorganizations including rights, warrants, voluntaries and mandatory events.
All eligible and qualified DTC members, both broker-dealers and banks, can use Canadian-Link Services, but they must be participating in the program.
New voluntary announcements have been created to process Canadian dollars. The announcements will be updatable as information is received. A complete announcement encompasses the body of the RIPS envelope, the payrates and any comments added by operations.
Redemption and voluntary reorganization event elections will be made through the existing tender offer processor (PTOP). All rights and warrant processing will be done through existing rights and warrant functions (PSOP and WARR). Current payment allocation functionality will be updated to provide a view of allocated items (SDAR) – including dividend payments as well.
Additional end of day reports will be generated for customer reconciliation purposes.