TMX Group Limited and Clearstream Banking S.A. launched the new Canadian Collateral Management Service (CCMS). Developed by TMX Group and Clearstream, CCMS facilitates the optimization and collateralization of securities finance activities throughout the Canadian market and provides exclusive domestic tri-party repo capabilities to increase liquidity and minimize exposure risk. BMO, CIBC, RBC, Scotiabank and TD, conducted inaugural trades via the first tri-party repo solution in Canada.

Tri-party repos provide a viable investment alternative for market participants seeking liquidity and to manage risk exposure. This will be especially important after the disappearance of Banker's Acceptances (BAs) following the cessation of the Canadian Dollar Offer Rate (CDOR) on June 28, 2024. CCMS will help market participants solve legacy technical challenges and operational limitations by automating the end-to-end lifecycle of a repo trade, optimizing collateral within the market and truly democratizing the repo market.

The first live tri-party repo transactions serve as a crucial enabler for the cessation of BAs, as well as an efficient platform to manage collateral within a T+1 settlement environment. CCMS will also be extending its services to corporate cash tri-party repo for the first time in Canada with subsequent expansions into securities lending and the use of equities collateral later in the year. Additionally, further automation capabilities will be enabled over the coming months.