Canada-U.S. Cross-border services
Every trading day, CDS clears and settles thousands of Canada-U.S. cross-border transactions that account for almost one-quarter of its total trade-processing volume. It is the most active and sophisticated inter-depository linkage in the world.
International Linkages (PDF)
Automated Confirmation Transaction
CDS's Automated Confirmation Transaction (ACT) service provides direct access to NASDAQ Weblink 2.0, a browser-based application that allows users to facilitate the post-execution steps of price and volume reporting, comparison and clearing, using the Financial Industry Regulatory Authority (FINRA)/NASDAQ trade reporting facility. CDS's ACT service is a unique sponsorship arrangement that allows Canadian broker-dealers to access NASDAQ without having to be direct members of NASDAQ. CDS customers of New York Link are eligible to use the ACT service.
Cross-border clearing and settlement
CDS offers customers two channels to effect Canada-U.S. cross-border transactions:
- DTC Direct Link settles on a trade-for-trade basis using the custodial and institutional clearing and settlement services of The Depository Trust Company (DTC). DTC provides trade-for-trade settlement and depository services for its participants in the U.S.
- New York Link clears and settles over-the-counter (OTC) trades with U.S. broker-dealers through The National Securities Clearing Corporation (NSCC). NSCC provides centralized clearance, continuous net settlement and information services for broker-to-broker trades in the U.S.
Both DTC and NSCC are subsidiaries of The Depository Trust & Clearing Corporation (DTCC), the U.S. holding company that provides clearance, settlement, depository and information services for a range of securities. For more information on cross-border clearing and settlement, see User Documentation.
International custodial links
CDS has custodial relationships with CAVALI, The Depository Trust Company (DTC), Euroclear France and Skandinaviska Enskilda Banken AB (SEB).
- CAVALI - facilitates the movement of positions in securities issued by Canadian companies that are inter-listed on the Lima Stock Exchange (BVL) and the TSX or the TSX Venture Exchange.
- The Depository Trust Company (DTC) - through CDS's DTC Direct Link service, members move cross-border securities electronically or physically - eliminating the need for CDS customers to maintain a U.S. presence or a third-party arrangement.
- Euroclear France - a unilateral custody link to move eligible French securities electronically between the two depositories.
- Skandinaviska Enskilda Banken AB -- a unilateral custody link.
International Ledger Reconciliation service (ILRS)
The International Ledger Reconciliation Service (ILRS) provides New York Link and DTC Direct Link customers with an exception report that electronically compares ledger positions. The ILRS report lists all discrepancies between customers' ledger positions at The Depository Trust Company (DTC) and customers' internal ledgers at their service bureaus. The report is divided into equities and bonds, and can list sub-accounts for each security.
International Ledger Reconciliation Service (PDF)
International Trade Reconciliation service (ITRS)
The International Trade Reconciliation Service (ITRS) reconciles data files and trade information provided by both CDS customers and The National Securities Clearing Corporation (NSCC). It offers two trading blotter reports to New York Link customers:
- Unmatched Trade Report lists discrepancies between NSCC's Trade Input files and the customer's internal records of daily trading activity.
- Dropped Trade Report highlights trades listed in the Unmatched Trade Report that are past the value date.
Customers can view these reports online via the report management system (RMS).
International Trade Reconciliation Service (PDF)
U.S. Entitlements processing
The U.S. Internal Revenue Service (IRS) requires non-U.S. residents to pay a withholding tax on entitlements originating from U.S. Institutions. CDS provides a service to New York Link and DTC Direct Link customers that ensures sufficient withholding tax is held in their accounts for each entitlement event.