Bank of Canada to Join The Collateral Management Service for Its Repo Operations

02:03 PM EST, 03/04/2026 (MT Newswires) -- The Bank of Canada on Wednesday said it will join the Canadian Collateral Management Service (CCMS) tri-party platform for its domestic repo operations by early 2027.

This reaffirms its commitment to resilient and well-functioning repo markets, wrote the bank in a statement.

In addition, the BoC said it intends to join the Canadian Derivatives Clearing Corporation (CDCC) to centrally clear its repo operations, following the completion of the TMX's investments to modernize 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. Overall, these benefits will increase the robustness and efficiency of Canada's repo market, pointed out BoC.

The plan to join CDCC aligns with the global trend towards increased use of central clearing, according to the BoC. As the central bank transitions to clearing its main repo operations through CDCC, the netting benefits will reduce frictions in its monetary policy transmission and increase the efficiency and effectiveness of those operations.

The BoC's support for these infrastructure improvements should provide market participants with greater confidence that the core repo market will remain resilient in episodes of market stress, it noted.

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