TMX Group, Clearstream to Launch Canadian Collateral Management Service

TMX Group Limited and Clearstream Banking S.A., the international central securities depository of Deutsche Börse Group, announced plans to launch a new, automated Canadian Collateral Management Service, or CCMS.

Together, TMX Group and Clearstream are working “to leverage the combined strength of their complementary services to develop and deliver the CCMS, which will include the introduction of Canada’s first domestic triparty repo capability.”

John McKenzie, Chief Executive Officer of TMX Group, said:

“We are pleased to work together with Clearstream, a world-leader in post-trade infrastructure and securities services in pursuit of a customized mobility and liquidity solution for Canada’s secured finance industry. In keeping with our purpose to make markets better and empower bold ideas, TMX is firmly committed to seeking out innovative, workable solutions to client challenges and strengthening Canada’s financial ecosystem. The new CCMS will enable our clients to better meet the continuously evolving collateral requirements of today’s markets, while supporting the growth of repos as an investment product for Canadian buy and sell side clients.”

Sam Riley, Chief Executive Officer of Clearstream Securities Services, added:

“It is at the heart of Clearstream’s collateral management strategy to provide our clients with reliable and scalable state-of-the-art solutions that reduce the frictional costs of trading through transparency and automation. In TMX, we have found an excellent partner to deliver our proven first-class triparty repo capability to the Canadian market. CCMS will deliver increased liquidity and efficiency while minimizing exposures, supporting the Canadian market on its endeavor to move to T+1. Clients will also benefit from Clearstream’s industry-leading technology and digital innovation, such as the cloud-based, digital collateral schedule capability known as OSCAR.”

Targeted for launch in the third quarter of 2023, the new CCMS will “facilitate optimization and collateralization of securities finance activities throughout the Canadian market.”

The initial phase of the CCMS will be “offered to market participants in Canada‘s secured funding market, providing an automated and efficient process throughout the transaction cycle.”

The CCMS will also “support the industry shift to a T+1 settlement cycle for the Canadian and US markets in 2024, to promote increased efficiencies and collateral mobility, while reducing operational risk.”

As noted in the update, TMX Group operates global markets, and “builds digital communities and analytic solutions that facilitate the funding, growth and success of businesses, traders and investors.”

TMX Group’s key operations “include Toronto Stock Exchange, TSX Venture Exchange, TSX Alpha Exchange, The Canadian Depository for Securities, Montréal Exchange, Canadian Derivatives Clearing Corporation, and Trayport which provide listing markets, trading markets, clearing facilities, depository services, technology solutions, data products and other services to the global financial community.”

TMX Group is “headquartered in Toronto and operates offices across North America (Montréal, Calgary, Vancouver and New York), as well as in key international markets including London, Singapore and Vienna.”

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