TMX Group and Clearstream announced the Bank of Canada (BoC) will be using the Canadian Collateral Management Service (CCMS). Developed by TMX Group and Clearstream, the CCMS facilitates the optimization and collateralization of securities finance activities throughout the Canadian market. The CCMS provides exclusive domestic tri-party repo capabilities to increase repo market liquidity.
The CCMS streamlines and simplifies end-to-end domestic collateral management activities, thereby unlocking trapped collateral and improving collateral mobility for repo, securities lending and margin for derivatives activities.
The participation of the central bank in domestic tri-party operations is both a globally accepted standard and a key facilitator for the broader market. The BoC joining the CCMS is a significant step towards further strengthening Canada’s financial markets ecosystem and aligning to global standards. In a recent analytical note, the BoC outlined the benefits of the CCMS.
Toni Gravelle, deputy governor at the Bank of Canada, said in a statement: “The Bank of Canada is pleased 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, said in a statement: “Since its launch in 2024, the CCMS has developed to be the go-to service for tri-party collateral management in Canada. The Bank of Canada deciding to join the service underlines its strategic significance for the stability, efficiency and innovative power of the country’s capital markets.”
Steve Everett, head of Post Trade Innovation, TMX Group, said in a statement: “This milestone modernizes, strengthens and standardizes the entire secured funding ecosystem improving market resilience, risk management and collateral mobility at scale.”