The Canadian Depository for Securities (CDS), a subsidiary of TMX Group, has replaced several of its core systems for clearing, settlement, and depository services as part of TMX’s ongoing Post Trade Modernization (PTM) programme.
The upgrade includes the implementation of TCS BaNCS for Market Infrastructure, a platform developed by Tata Consultancy Services, announces CDS in a press release. It replaces legacy systems previously used for critical functions such as clearing and settlement, entitlement payments, and depository operations across equities, fixed income, and OTC markets.
CDS serves as Canada’s national securities clearinghouse and plays a central role in the country’s financial market infrastructure. The system overhaul is designed to address aging technology and align post-trade processes more closely with current operational and industry standards, claims CSD.
Canadian Collateral Management Service
The new platform also supports the Canadian Collateral Management Service, launched in 2024, which aims to improve the handling of collateral across the Canadian market. The infrastructure change is part of a phased modernisation effort by TMX Group to improve system resilience, efficiency, and adaptability.
The transition follows several years of planning, testing, and collaboration between CDS’s internal teams, TCS, and a network of market participants. Kevin Sampson, President of CDS, noted that the project required coordinated work across clearing and technology divisions as well as input from stakeholders across the industry.
While the system is now live, the focus will likely shift to monitoring its performance in the market environment and evaluating its impact on operational workflows. The PTM initiative continues, with TMX Group indicating that additional phases of infrastructure renewal are planned.
