CDCC Launches Fixed Income Central Counterparty Services
Canadian repos now being cleared
February 21, 2012 (TORONTO) – TMX Group Inc. today announced that the Canadian Derivatives Clearing Corporation (CDCC) has launched its fixed income central counter party services and has begun to clear repurchase (repo) agreements.
“CDCC has a 35 year history supporting the development and evolution of the Canadian capital markets, and we are proud of the contribution that we have made in providing this important infrastructure,” said Alain Miquelon, CEO, Montréal Exchange and Group Head, Derivatives. “We are extremely pleased to deliver a repo clearing solution that both meets the needs of clearing participants and strengthens the Canadian market."
The mandate to develop the infrastructure for central-counterparty services for the Canadian fixed income market was awarded by the Investment Industry Association of Canada (IIAC) in December 2009. “This solution is the culmination of months of work by CDCC's technology and industry specialists, the IIAC, the Bank of Canada and industry stakeholders,” said Glenn Goucher, President and Chief Clearing Officer, CDCC. "We remain fully focused on ensuring that the solution has the flexibility, scale and enhancements needed to evolve with industry requirements."
"Intra-financial system markets provide for well-functioning capital markets. CDCC's fixed income CCP will contribute to efficient repo markets in Canada," said Ian Russell, President and CEO of the IIAC. "The success of the project owes much to the many professionals from our member firms who gave generously of their time and expertise to the initiative."
Today marks the beginning of a carefully-planned implementation period. Over a 13-week period, an increasing number of securities will be added in increments to ensure an orderly introduction of the service.
CDCC, which was launched in 1975, is the issuer, clearinghouse and guarantor of exchange traded derivatives in Canada and exclusive clearinghouse to Montreal Exchange. Please visit www.cdcc.ca for more information about CDCC.
About TMX Group (TSX-X)
TMX Group's key subsidiaries operate cash and derivative markets for multiple asset classes including equities, fixed income and energy. Toronto Stock Exchange, TSX Venture Exchange, TMX Select, Montreal Exchange, Canadian Derivatives Clearing Corporation, Natural Gas Exchange, Boston Options Exchange (BOX), Shorcan, Shorcan Energy Brokers, Equicom and other TMX Group companies provide listing markets, trading markets, clearing facilities, data products and other services to the global financial community. TMX Group is headquartered in Toronto and operates offices across Canada (Montreal, Calgary and Vancouver), in key U.S. markets (Houston, Boston, Chicago and New York) as well as in London and Beijing. For more information about TMX Group, visit our website at www.tmx.com. Follow TMX Group on Twitter at http://twitter.com/tmxgroup.
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