Clearstream and TMX to launch new Canadian collateral management service in Q3

  • TMX and European post-trade services provider Clearstream join forces to launch Canadian Collateral Management Service (CCMS)
  • Exclusive domestic tri-party repo capability to increase liquidity and minimize exposure risk
  • Platform launch planned for third quarter of 2023

TMX Group and Clearstream Banking 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.

“We are pleased to work together with Clearstream, a world-leader in post-trade infrastructure and securities services in pursuit of a customised mobility and liquidity solution for Canada’s secured finance industry,” said John McKenzie, chief executive officer of TMX Group, in a statement. “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, said in a statement: “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.


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