- BMO, CIBC, RBC, Scotiabank and TD participated in the
first live transactions
- Marks the first domestic tri-party repo capability within
the Canadian market
- Represents an optimized financing solution supporting the
cessation of banker's acceptances
TORONTO and LUXEMBOURG, April 30,
2024 /CNW/ - TMX Group Limited (TMX Group),
which operates Toronto Stock Exchange and key Canadian post-trade
infrastructure including the Canadian Depository for Securities
(CDS), and Clearstream Banking S.A. (Clearstream), the
international central securities depository of Deutsche Börse
Group, today launched the new Canadian Collateral Management
Service (CCMS).
Developed by TMX Group and Clearstream, CCMS facilitates the
optimization and collateralization of securities finance activities
throughout the Canadian market and provides exclusive domestic
tri-party repo capabilities to increase liquidity and minimize
exposure risk.
BMO, CIBC, RBC, Scotiabank and TD, conducted inaugural trades
via the first tri-party repo solution in Canada.
Tri-party repos provide a viable investment alternative for
market participants seeking liquidity and to manage risk exposure.
This will be especially important after the disappearance of
Banker's Acceptances (BAs) following the cessation of the Canadian
Dollar Offer Rate (CDOR) on June 28,
2024.
CCMS will help market participants solve legacy technical
challenges and operational limitations by automating the end-to-end
lifecycle of a repo trade, optimizing collateral within the market
and truly democratizing the repo market.
The first live tri-party repo transactions serve as a crucial
enabler for the cessation of BAs, as well as an efficient platform
to manage collateral within a T+1 settlement environment. CCMS will
also be extending its services to corporate cash tri-party repo for
the first time in Canada with
subsequent expansions into securities lending and the use of
equities collateral later in the year. Additionally, further
automation capabilities will be enabled over the coming months.
Harri Vikstedt, Senior Policy Director, Bank of Canada and Co-Chair, Canadian Infrastructure
and Market Practices Advisory Group (CIMPA), said: "The
introduction of CCMS will promote a well-functioning money market
and modernize the Canadian repo landscape. It will help the
development of an active two-sided term repo market which will
support liquidity in cash products."
Nicholas Chan, MD and Head,
Financial Resource Management, BMO Capital Markets and Co-Chair,
Canadian Infrastructure and Market Practices Advisory Group
(CIMPA), said: "The development of a tri-party repo service
represents an advancement in the evolution of liquidity management
in Canada, leveraging technology
to optimize efficiency, risk management and collateral eligibility
in the Canadian market."
Marton Szigeti, Head of
Collateral, Lending & Liquidity Solutions at Clearstream,
said: "As the financial landscape evolves towards faster and more
efficient markets, we stay committed to empowering our clients
with reliable and scalable state-of-the-art solutions. Our
Canadian Collateral Management Service ensures that our clients can
navigate changes like the shift to T+1 with confidence, enabling
them to stay ahead in an ever-evolving market environment. We
look forward to continuing to anchor and grow our support for the
domestic funding and financing market together with TMX Group."
Steve Everett, Head of Post
Trade Innovation, TMX Group, said: "Through this
collaboration with Clearstream to develop a tailored mobility and
liquidity solution for Canada's
secured finance sector, TMX Group demonstrates its commitment to
deliver innovative, market driven solutions that help to make
markets better. The CCMS will enhance our clients' capacity to
adapt to the ever-changing collateral demands of modern markets
while facilitating the expansion of repos as a viable investment
avenue for both Canadian buy and sell-side participants. As the
Canadian market moves towards T+1, CCMS will also play a pivotal
role in supporting this critical transition."
About TMX Group (TSX:X)
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, TMX Trayport and TMX
VettaFi, 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. For more information about TMX Group,
visit www.tmx.com. Follow TMX Group on X: @TMXGroup.
About Clearstream
Clearstream is the innovative and trusted post-trade business
for the global markets. It runs the leading securities and funds
servicing ecosystems of tomorrow.
The company operates the German and Luxembourg central securities depositories and
an international central securities depository for the Eurobonds
market. With 17 trillion Euros in
assets under custody, it is one of the world's largest settlement
and custody firms for domestic and international
securities.
It also delivers premier fund execution, distribution, data and
reporting services, covering over 50 fund markets worldwide.
Clearstream is part of Deutsche Börse Group, an international
exchange organisation and provider of innovative market
infrastructures.
To learn more, visit us at www.clearstream.com or connect via
LinkedIn.
SOURCE TMX Group Limited
