Bank of Canada will begin using the Canadian Collateral Management Service (CCMS), a tri-party repo platform developed by TMX Group and Clearstream Banking S.A. The move is expected to improve liquidity and collateral mobility in Canada’s secured funding markets, according to a Clearstream press release.
Tri-party repo arrangements involving central banks are a common feature of financial markets worldwide, aimed at increasing efficiency and stability. By joining CCMS, Bank of Canada aligns with this model, facilitating smoother collateral management for repo, securities lending, and derivatives margining.
Deputy Governor Toni Gravelle stated that once the necessary IT updates are in place, the CCMS will allow the central bank to execute market operations with greater speed and flexibility.
Market implications
Since its launch in 2024, the CCMS has served as a domestic platform for collateral optimisation in Canada, aiming to reduce inefficiencies and improve risk management. Bank of Canada’s participation signals further integration of the system into the country’s financial infrastructure.
Clearstream’s Head of Collateral, Lending & Liquidity Solutions, Marton Szigeti, called the decision an important step in enhancing Canada’s capital markets. TMX Group’s Head of Post Trade Innovation, Steve Everett, noted that the central bank’s involvement contributes to market resilience and standardisation.
