The Bank of Canada has opted to utilise the Canadian Collateral Management Service (CCMS) to execute its market operations with greater speed and flexibility.
Developed by Canada-based financial services company TMX Group alongside Clearstream Banking SA, the commercial bank money service provider, the CCMS facilitates the optimisation and collateralisation of securities finance activities throughout the Canadian market. The CCMS also provides exclusive domestic tri-party repo capabilities to increase repo market liquidity.
By streamlining and simplifying end-to-end domestic collateral management activities, the CCMS aims to unlock trapped collateral and improve collateral mobility for repo, securities lending and margin for derivatives activities.
Toni Gravelle, deputy governor of the Bank of Canada, commented on the decision: “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.”
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. TMX and Clearstream say that the Bank of Canada joining the CCMS is a significant step towards further strengthening Canada’s financial markets ecosystem and aligning to global standards.
Marton Szigeti, head of collateral, lending and liquidity solutions at Clearstream, also commented: “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.”
“This milestone modernises, strengthens and standardises the entire secured funding ecosystem improving market resilience, risk management and collateral mobility at scale,” added Steve Everett, head of post trade innovation at TMX Group.
