The Bank of Canada announced Wednesday its decision to utilize the Canadian Collateral Management Service (CCMS), a system developed by TMX Group and Clearstream, to enhance its market operations and collateral management capabilities.
Bank of Canada to Utilise Clearstream/TMS Group’s Canadian Collateral Management Service
TMX and Clearstream said the CCMS, launched in 2024, optimises securities finance activities across the Canadian market, providing domestic tri-party repo capabilities to increase market liquidity.
It is also said to help unlock trapped collateral, improving mobility for repo transactions, securities lending, and margin requirements for derivatives.
Bank of Canada Deputy Governor Toni Gravelle highlighted the benefits of the system, stating: “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.”
The participation of central banks in tri-party operations is a globally accepted standard, enabling greater market efficiency and financial stability.
Marton Szigeti, Head of Collateral, Lending & Liquidity Solutions at Clearstream, said the Bank of Canada’s participation underlines the CCMS’s strategic significance in enhancing market resilience.
Steve Everett, Head of Post Trade Innovation at TMX Group, said: “We are delighted that the Bank of Canada is joining the CCMS. This milestone modernises, strengthens, and standardises the entire secured funding ecosystem, improving risk management and collateral mobility at scale.”
