TMX Group and Clearstream launch Canadian Collateral Management Service
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TMX Group and Clearstream launch Canadian Collateral Management Service 30 April 2024 Canada Reporter: Sophie Downes
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TMX Group and Clearstream have launched the Canadian Collateral Management Service (CCMS).
The new offering facilitates the collateralisation of securities finance activities throughout the Canadian market. It also provides domestic triparty repo capabilities, which aim to increase liquidity and minimise exposure risk.
The trades were conducted by BMO, CIBC, RBC, Scotiabank and TD.
Harri Vikstedt, senior policy director at Bank of Canada, and co-chair of Canadian Infrastructure and Market Practices Advisory Group, says: “The introduction of CCMS will promote a well-functioning money market and modernise the Canadian repo landscape.
“It will help the development of an active two-sided term repo market which will support liquidity in cash products.”
Further automation capabilities will be enabled over the coming months, the firm says.
In addition, CCMS will be extending its services to corporate cash triparty repo for “the first time” in Canada, with subsequent expansions into securities lending and the use of equities collateral later in the year.
Steve Everett, head of Post Trade Innovation at TMX Group, adds: “As the Canadian market moves towards T+1, CCMS will also play a pivotal role in supporting this critical transition.”
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