CDS distributed an $8.5 million rebate to its customers in the first quarter. The rebate was a result of the effective containment of operating expenses combined with CDS's ability to process increasingly higher market volumes without a consequent increase in costs. Distribution of the rebate was based on the type and volume of business that each customer transacted throughout the 2009 fiscal year.

Tracking and submitting corporate action liability records was made more efficient with the implementation of CDS's Corporate Action Liability Management service (CALMS). The service replaced a paper-intensive fax notification process with a secure and uniform web-based electronic tracking service. CALMS allows subscribers to create, submit, acknowledge, accept, reject, cancel and track corporate action liability records.

CDS launched a new Bulletins subscription service called Bulletins Select. The new service allows subscribers to see a list of all bulletins related to a specific security and tax reporting type (T3, T5 or T5013).

Also in this quarter, CDS introduced a new Bulletin category called Restricted Securities. This new category provides a central location for participants looking for information on eligible restricted securities held by CDS.








Service level standards - Status as at January 29, 2010

Reliability/availability measures		Result
CDSX availability	³ 99.8% annual average	100%
NCS availability	³ 99.6% annual average	100%
Operational reliability	³ 99.4% annual average	100%
Payment exchange	³ 99.6% annual average*	100%
Days of disruption	One day or less per year	None
Disaster recovery plan	100% successful test	Completed in November 2009
Customer service measures
Claims	Claims submitted by customers will be processed within 20 business days. Management's decision will be presented to the Audit/Risk Committee at its next meeting for information purposes. The target is to keep claims approved by management to less than $50,000 in any fiscal year.	None
Entitlement processing measures
Payments on payable date – entitlement payments (in dollars) will be paid as follows:
	1. ³ 99.9% of income entitlements (interest and dividends) on payable date	99.9%*
	2. ³ 99.9% of all corporate actions (reorganizations) on payable date where pre-determined**	99.9%*
Published Information	99.0% of entitlement information bulletins will be published within 24 hours of receipt of information.	100%

*Excluding customer extensions.
**Where not pre-determined, deemed to be date on which funds are released to CDS.