The Canadian Depository for Securities Limited today urged investors to deposit their remaining physical strip bonds with their investment dealer or securities custodian by January 11, 2002.

Starting that date, deposits of physical strip bonds with Canada’s securities depository, CDS, will be suspended for about six months as the strip bonds held and received are reconstituted and put into electronic form.

The new measures will reduce overall costs for Canada’s bond market participants and reduce exposure to the high risks posed by holding these instruments in physical form. The changes will not affect strip bond holders’ entitlements, rights or records of their holdings.

“The time has come to sweep the street of physical strip bonds,” said Allan Cooper, CDS President and CEO. “Their small size presents a major risk to whoever holds them. It is far too easy to lose a physical strip bond worth thousands of dollars when it is as tiny as a couple of postage stamps,” illustrated Cooper.

“Because these valuable securities are irreplaceable if lost, I strongly encourage anyone holding physical strip bonds to deposit them. Depositors will reduce their risk and ensure their continued ability to sell these instruments and maximize the net price from the eventual sale.”

Since 1987, CDS has worked with the financial community to reduce risks and costs associated with physical strip bonds and this new initiative represents a major step towards permanently eliminating those remaining. As well, the elimination of physical strip bonds is in line with the recently stated goals of the industry-sponsored Canadian Capital Markets Association to eliminate most, if not all, securities certificates in Canada.

These changes were made possible by the support and co-operation of the Bank of Canada, the federal Department of Finance, Montreal Trust Company, Scotiabank, National Bank of Canada, the Canadian Imperial Bank of Commerce, CIBC Mellon and the Investment Dealers Association of Canada.