CDS Clearing and Depository Services Inc. will distribute a $7 million rebate to market participants, the Toronto-based company said Thursday. The rebate was credited to eligible firms on December 13.

CDS is Canada’s national securities depository, clearing and settlement hub — supporting Canada’s equity, fixed income and money markets, holding over $3 trillion on deposit and handling over 320 million domestic securities trades annually. It refers to itself as a “cost-recovery organization”.

CDS says the rebate is due to its effective containment of operating expenses and significantly higher market volumes and revenues in domestic clearing services, depository, custodial and entitlement services, and international services.

This year’s rebate is in addition to $4.6 million in participant savings due to price decreases in 2010 and a further $2.6 million in savings provided through volume discounts applied to certain services over the course of the year.

“In an environment of exponential growth in trading activity, CDS has more than kept pace with the demand for cost-effective services,” says Ian Gilhooley, president and CEO.

IE