Canadian dealers to develop fixed income clearing counterparty

Canadian dealers to develop fixed income clearing counterparty

Canadian dealers are to work with the Canadian Derivatives Clearing Corporation (CDCC) to develop a central counterparty (CCP) and netting utility for Canada's fixed income market.

The Investment Industry Association of Canada (IIAC) says it will work with the TMX-owned derivatives clearing house to draw up a strategic plan to build and implement the proposed CCP and netting utility.

Ian Russell, president and CEO, IIAC, comments: "One of the lessons learned from the recent financial crisis is the need for an effective netting facility and clearing house for repo transactions to provide core funding and liquidity for debt markets."

He says the Association has established an industry steering committee to work closely with CDCC on the initiative, with a go-live date pencilled in for mid-2010.

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