TMX Group & Clearstream: Bank of Canada’s Participation in CCMS

TMX Group Limited and Clearstream Banking have announced that the Bank of Canada will utilize the Canadian Collateral Management Service (CCMS). Developed by TMX Group and Clearstream, the CCMS is here to optimize and collateralize securities finance activities across Canada’s financial markets.

Also, the CCMS provides unique domestic tri-party repo capabilities, enhancing liquidity in the Canadian repo market. It simplifies and streamlines the end-to-end management of collateral for repo transactions, securities lending, and margin activities related to derivatives. By unlocking trapped collateral, the service facilitates greater mobility of collateral and improves market efficiency.

TMX Group & Clearstream: Bank of Canada’s Participation in CCMS

The Bank of Canada’s participation in the domestic tri-party operations marks an important step in aligning Canada’s financial market practices with global standards. As the central bank joins the CCMS, the initiative strengthens the financial market ecosystem and enhances market stability.

Toni Gravelle, Deputy Governor of the Bank of Canada, expressed the bank’s enthusiasm about the move, stating, “The Bank of Canada is happy to join the CCMS. Once we’ve updated our IT systems to onboard the new platform, the CCMS will enable us to execute our market operations with greater speed and flexibility.”

Marton Szigeti, Head of Collateral, Lending & Liquidity Solutions at Clearstream, commented on the significance of the CCMS, noting, “Since its launch in 2024, the CCMS has become the go-to service for tri-party collateral management in Canada. The Bank of Canada’s decision to join underscores its importance for the country’s capital markets.”

Also, Steve Everett, Head of Post Trade Innovation at TMX Group, highlighted the milestone, saying, “We are happy that the Bank of Canada is joining the CCMS. This modernization strengthens and standardizes Canada’s secured funding ecosystem, enhancing resilience, risk management, and collateral mobility.”

So, this collaboration between TMX Group and Clearstream is poised to drive greater market resilience, improve risk management, and ensure the smooth flow of collateral across Canada’s financial ecosystem.

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