CDS Clearing and Depository Services Inc. announced Monday that it is cutting settlement fees for exchange trades to under 1 cent for 2012.
The clearing and settlement firm said that it will reduce prices by 29% for all exchange and non-exchange trades and trade-for-trade settlements. As a result of the fee reductions, the combined price for reporting and netting exchange trades will be reduced from 1.2 cents (in 2011) to 0.82 of a cent per transaction.
“This decrease demonstrates CDS’s ongoing commitment to delivering low clearing fees for the benefit of the Canadian capital markets,” it said.
Additionally, the firm announced a full slate of price changes for a variety of services for 2012.
It also said that its board of directors has deferred a decision to offer a rebate to participants for 2011, and to announce a volume-based fee discount schedule for 2012, “until there is greater clarity around the financial requirements to be recommended for financial market infrastructure providers by regulators (specifically, the revised principles from the Committee on Payment and Settlement Systems and the International Organization of Securities Commissions’ Technical Committee).