SIMA urges CDS Clearing to reconsider elimination of fee rebates

November 3, 2025 (Toronto) – The Securities and Investment Management Association (SIMA) today submitted its response to the proposal from CDS Clearing and Depository Services Inc. (CDS Clearing) to eliminate the longstanding fee-rebate model and alter certain core clearing and settlement-fee structures.

CDS Clearing is Canada’s national securities depository hub for clearing, and settlement.

SIMA recognizes CDS Clearing’s vital role in maintaining a stable and competitive infrastructure and the necessity for ongoing investment in technology and operations. However, the proposed changes have raised significant industry concerns about financial accountability, participant value, governance, and transparency.

“Modernizing Canada’s clearing and settlement infrastructure is essential, but it must be achieved through transparent and equitable reforms that maintain longstanding safeguards and respect industry commitments,” said Andy Mitchell, President and CEO, SIMA. “We are calling on CDS Clearing and its regulators to work with all participants to build a fee model that truly supports Canada’s capital markets and reflects shared industry priorities.”​

Key points in SIMA’s submission

• The fee-rebate model, introduced in 2012 as a safeguard against unchecked fee increases and vertical integration risks, should not be eliminated without a robust governance structure and participant oversight.​
• The responsibility for funding modernization should not be unilaterally shifted to CDS Clearing participants, especially when current service fees already account for infrastructure-enhancement costs.​
• The proposal lacks sufficient justification and transparency and does not adequately reflect the public interest commitments established at the time of the Maple Group’s acquisition of CDS in 2012.​

SIMA urges CDS Clearing and its regulators to reconsider these amendments and collaborate with industry stakeholders to develop a transparent, equitable fee structure that supports both modernization and market integrity.

About SIMA

The Securities and Investment Management Association empowers Canada’s investment industry.  The association is the leading voice for the securities and investment management industry, which oversees approximately $4 trillion in assets for over 20 million investors and the Canadian capital markets. Our members—including investment fund managers, investment and mutual fund dealers, capital markets participants, and professional service providers—are committed to creating a resilient, innovative investment sector that fuels long-term economic growth and creates opportunities for all Canadians.

For more information

Christine Harminc
Director, Communications and Public Affairs
charminc@sima-amvi.ca
416-309-2313