TMX Group Partners with Clearstream to Launch New Canadian Collateral Management Service

TMX Group, a Canadian exchange operator, and Clearstream, a leading European provider of post-trade services which is wholly owned by Deutsche Börse, announced plans to launch a new, automated Canadian Collateral Management Service (CCMS) featuring Canada's first domestic triparty repo capability.

The new CCMS, which will be launched in the third quarter of 2023, will facilitate optimization and collateralization of securities finance activities throughout the Canadian market.

The CCMS will start with a launch phase involving participants in Canada's secured funding market, providing them with 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, enhancing efficiencies and collateral mobility while minimizing risk.

John McKenzie, CEO 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, CEO of Clearstream Securities Services, said: "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."

Clearstream, the international central securities depositor, also entered into an agreement with Vermeg​, a provider of collateral management solutions for Central Banks, in January this year for the launch of STP collateral management solution connected to the Eurosystem Collateral Management System (ECMS).