Canadian Derivatives Clearing Corp. (CDCC) has launched a new direct-clearing model for pension funds and certain other buy-side firms.
CDCC, which serves as the national central clearing counterparty (CCP) for derivatives, repos, and certain other over-the-counter products, announced Monday that its direct-clearing model for buy-side firms, which allows them to clear cash and repo trades directly through the CDCC, is now operational.
The Healthcare of Ontario Pension Plan is the first buy-side organization to use the new platform. More buy-side participants are expected to join later in 2018, CDCC says in a news release.
“We are proud to bring our new direct clearing solution to market, an industry-driven solution designed to address client needs and to position CDCC prominently among global leaders in central counterparty clearing,” says Glenn Goucher, president of CDCC, in a statement.
The direct-clearing model was developed in consultation with the investment industry, including pension funds, securities regulators, the Bank of Canada, the Investment Industry Association of Canada, and CDCC clearing members.
“This initiative delivers marked improvements in terms of the efficiency, resiliency and capacity of clearing services available to buy side institutions currently serving investors from coast to coast,” Goucher adds.