TMX Group Ltd. announced on Monday that both NGX, a leading North American energy exchange and central clearing counterparty (CCP), and the Canadian Derivatives Clearing Corp. (CDCC), Canada's national CCP for exchange-traded derivative products, certain over-the-counter (OTC) products and repos, have received third country CCP recognition from the European Securities and Markets Authorities (ESMA), effective immediately.
The approval allows CDCC and NGX to provide clearing services to firms and trading venues operating in Europe.
Toronto-based CDCC, which is owned by the Montreal Exchange (MX), serves as the CCP for exchange-traded derivatives, certain OTC derivatives and repo transactions, in Canada; Calgary-based NGX trades and clears both exchange-traded and OTC natural gas and electricity products.
"Third country CCP recognition is an important achievement for CDCC and MX as we continue to work to efficiently serve our existing European client base and attract additional clients to our market," says Alain Miquelon, president and CEO of the MX and group head of derivatives at TMX Group.
Last month, the ESMA signed memoranda of understanding (MoUs) with Canadian regulators (in Alberta, Manitoba, Ontario, and Quebec), which established co-operation arrangements, including processes for exchanging information, regarding CCPs.