Bank of Canada to join the Canadian Collateral Management Service
05 March 2026 Canada
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The Bank of Canada will join the Canadian Collateral Management Service (CCMS) triparty platform for its domestic repo operations by early 2027.
In addition, the bank intends to join the Canadian Derivatives Clearing Corporation (CDCC) to centrally clear its repo operations.
The decision to join the CDCC will follow the completion of TMX’s investments to modernise its central clearing services to facilitate broader adoption by a wider range of participants.
The CCMS will enable buy and sell side market participants in Canada to manage risks and liquidity more efficiently, benefit from a greater variety of funding sources, enhance collateral mobility, and outsource settlement and administrative functions.
According to the bank, these benefits will increase the robustness and efficiency of Canada’s repo market.
Conducting the bank’s repo operations within the CCMS triparty ecosystem will support more efficient and timely settlement for central bank operations, assist in developing the term repo market, and encourage the market adoption of the general collateral repo market backed by Government of Canada securities.
CDCC cleared repo trades minimise counterparty credit risk by guaranteeing settlement, and increase balance sheet capacity of intermediating dealers in securities financing markets through netting of offsetting repo transactions.
The Bank of Canada’s plan to join CDCC aligns with the global trend towards increased use of central clearing.
As the bank transitions to clearing its main repo operations through CDCC, it says netting benefits will reduce frictions in its monetary policy transmission and increase the efficiency and effectiveness of those operations.
In addition, the bank intends to join the Canadian Derivatives Clearing Corporation (CDCC) to centrally clear its repo operations.
The decision to join the CDCC will follow the completion of TMX’s investments to modernise its central clearing services to facilitate broader adoption by a wider range of participants.
The CCMS will enable buy and sell side market participants in Canada to manage risks and liquidity more efficiently, benefit from a greater variety of funding sources, enhance collateral mobility, and outsource settlement and administrative functions.
According to the bank, these benefits will increase the robustness and efficiency of Canada’s repo market.
Conducting the bank’s repo operations within the CCMS triparty ecosystem will support more efficient and timely settlement for central bank operations, assist in developing the term repo market, and encourage the market adoption of the general collateral repo market backed by Government of Canada securities.
CDCC cleared repo trades minimise counterparty credit risk by guaranteeing settlement, and increase balance sheet capacity of intermediating dealers in securities financing markets through netting of offsetting repo transactions.
The Bank of Canada’s plan to join CDCC aligns with the global trend towards increased use of central clearing.
As the bank transitions to clearing its main repo operations through CDCC, it says netting benefits will reduce frictions in its monetary policy transmission and increase the efficiency and effectiveness of those operations.
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