TMX Group’s wholly owned subsidiary, the Canadian Depository for Securities (CDS) has upgraded its foundational clearing technology, as part of the firm’s drive to modernise the post-trade experience.
John McKenzie
The company, which serves as Canada’s equities and fixed income clearinghouse, designed the new infrastructure under its post-trade modernisation initiative (PTM), replacing certain legacy systems related to clearing and settlement, and depository and entitlement payments.
Through upgrading the infrastructure, TMX claims that the evolving needs of marketplace participants, regulators, investors, financial institutions will be better served with enhanced security, simplified user interaction, and greater flexibility for future enhancements.
“Post trade modernisation represents a game-changer for Canada’s equities, fixed income and OTC clearinghouse and a key milestone in the evolution of TMX,” said John McKenzie, chief executive of TMX Group.
“The launch of the new platform advances our core technology capability and ultimately strengthens Canada’s ability to compete for global investment,” McKenzie continued. “TMX’s investment in clearing technology also delivers on our enterprise wide commitment to ensuring these critical systems are efficient, resilient and adaptive.”
The newly upgraded infrastructure is powered by Tata Consultancy Service’s scalable and standards compliant clearing and settlement solution, TCS BaNCS for Market Infrastructure.
The Toronto-based company has also said that the new platform will provide important upgrades to critical components of Canada’s capital markets infrastructure.
Kevin Sampson, CDS president, said: “The successful completion of the complex PTM project is the culmination of a great deal of hard work by a dedicated team here across clearing and technology divisions, working in close collaboration with TCS, and our network of industry participants.”
The move is also set to build into recent initiatives launched by the firm, such as its Canadian Collateral Management Service (CCMS) announced in 2024, which aims to optimise triparty collateral management and reduce operational risk.
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