Canada's
securities depository to collaborate with DTCC to expand role in
global financial infrastructure
TORONTO, Sept. 12, 2014 /PRNewswire/ - CDS Clearing
and Depository Services Inc. (CDS), Canada's national securities depository,
clearing and settlement hub, today announced that the Ontario
Securities Commission (OSC) has agreed to sponsor CDS towards
endorsement as a Canadian Pre-Local Operating Unit ("Pre-LOU")
under the Global Legal Entity Identifier System (GLEIS). By
sponsoring CDS, the OSC has agreed to assist CDS with the
endorsement process.
Global regulators have undertaken the Legal Entity Identifier
(LEI) initiative to strengthen the world's financial system. CDS'
role, once endorsed, will be that of a Pre-LOU in Canada. The Regulatory Oversight Committee
(ROC), a committee of regulatory authorities from around the world,
has assigned the four-digit prefix #9278 to CDS as a sponsored
Pre-LOU in Canada.
The #9278 prefix will only become operational upon receipt of
the ROC's endorsement of CDS as a Canadian Pre-LOU. Until that
endorsement is received, CDS will direct entities wishing to
register for an LEI from the CDS Securities Management Solutions
Inc. website (www.cdssolutions.ca) to the Global Markets Entity
Identifier (GMEI) utility registration portal, operated by the
Depository Trust & Clearing Corporation (DTCC) in collaboration
with SWIFT.
CDS Securities Management Solutions Inc. (CDS Solutions), an
operating subsidiary of CDS, has entered into a strategic
collaboration with DTCC. Once endorsed as a Pre-LOU by the ROC, CDS
will offer Canadian entities LEI-issuance in collaboration with
DTCC's GMEI utility. Until endorsement is received, entities are
invited to visit the CDS Solutions website for more information on
how to obtain an LEI.
"CDS is pleased to enter this partnership with the GMEI utility,
the industry leading Pre-LOU, and looks forward to completing the
Pre-LOU endorsement process with the guidance of the OSC", said
Jean Desgagné, President and CEO of CDS. "This new role will allow
us to expand the scope of CDS's service offerings to strengthen
Canada's markets, enhance our
international competitive position and enable regulators and
customers to more effectively manage systemic and counterparty
risk."
"DTCC and CDS have had a long history of working together,
including operating the highest volume interface between central
securities depositories", added William
Hodash, Managing Director, DTCC. "Given the
interconnectedness of the markets and our client base,
collaborating on LEI and leveraging each other's capabilities and
investments, is a natural evolution of our relationship."
The implementation of a Canadian Pre-LOU precedes the Canadian
market's approaching October 31, 2014
deadline to begin reporting certain securities transactions to
registered trade repositories using LEIs to identify all trade
counterparties. This deadline follows the November 14, 2013, publication of OSC Rule 91-507
- Trade Repositories (TR) and Derivatives Data Reporting (DR). The
Rule requires the use of an LEI to identify trade counterparties,
the goal of which is to bring greater transparency to the OTC
derivatives market and act as a precursor for future rules.
About TMX Group (TSX: X) and CDS Securities Management
Solutions Inc.
TMX Group's key subsidiaries operate cash and derivative markets
and clearinghouses for multiple asset classes including equities,
fixed income and energy. Toronto Stock Exchange, TSX Venture
Exchange, TMX Select, Alpha Group, The Canadian Depository for
Securities, Montreal Exchange, Canadian Derivatives Clearing
Corporation, NGX, BOX Options Exchange, Shorcan, Shorcan Energy
Brokers, Equicom and other TMX Group companies provide listing
markets, trading markets, clearing facilities, depository services,
data products and other services to the global financial community.
TMX Group is headquartered in Toronto and operates offices across
Canada (Montreal, Calgary and Vancouver), in key U.S. markets (New York, Houston, Boston and Chicago) as well as in London, Beijing and Sydney. For more information about TMX Group,
visit our website at www.tmx.com. Follow TMX Group on Twitter at
http://twitter.com/tmxgroup.
CDS Securities Management Solutions Inc. (CDS Solutions) is a
subsidiary of TMX Group. CDS Solutions offers depository-related
services to issuers and their agents and facilitates securities
issuance and registrar and paying agent-related activities. CDS
Solutions is dedicated to promoting the use of un-certificated
issues and electronic payment as an efficient and secure
alternative to paper certificates and cheques. For more information
about CDS Solutions, visit our website at www.cdssolutions.ca.
About DTCC's Global Markets Entity Identifier (GMEI)
utility
The Global Market Entity Identifier (GMEI) utility, formerly
known as the CICI utility, is DTCC's (The Depository Trust &
Clearing Corporation's) Legal Entity Identifier (LEI) solution
offered in collaboration with SWIFT. GMEI is designed to create and
apply a single, universal standard identifier to any organization
or firm involved in a financial transaction globally and was
developed in response to the financial crisis of 2008-2009 after
governments and regulators called for new financial market
regulation.
DTCC and SWIFT designed the GMEI utility with the assistance of
a consortium of 14 global financial services organizations led by
the Global Financial Markets Association (GFMA). It is designed to
meet global requirements across all asset classes. The solution
went live in August 2012, and has
since been endorsed at a global level by the Regulatory Oversight
Committee (ROC), the global group of regulators established by the
Group of 20 (G20) and the Financial Stability Board (FSB) to
oversee development of the Global LEI System. This endorsement
means that codes assigned by the GMEI utility are now recognized as
LEIs by all of the more than 50 regulators that are members of the
ROC.
The GMEI utility operates as a pre-Local Operating Unit within
the Global LEI System. The website for the GMEI utility is
www.gmeiutility.org.
About DTCC
DTCC has operating facilities and data centers around the world
and, through its subsidiaries, automates, centralizes, and
standardizes the post-trade processing of financial transactions
for thousands of institutions worldwide. With over 40 years of
experience, DTCC is the premier post-trade market infrastructure
for the global financial services industry. From operating
facilities, data centers and offices in 15 countries,
DTCC, through its subsidiaries, automates, centralizes, and
standardizes the post-trade processing of financial transactions,
mitigating risk, increasing transparency and driving efficiency for
thousands of broker/dealers, custodian banks and asset managers
worldwide.
User owned and industry governed, the firm simplifies the
complexities of clearing, settlement, asset servicing, data
management and information services across asset classes, bringing
increased security and soundness to the financial markets. In
2013,
DTCC's subsidiaries processed securities transactions valued at
approximately US$1.6 quadrillion. Its
depository provides custody and asset servicing for securities
issues from 139 countries and territories valued at US$43 trillion. DTCC's global trade repository
processes tens of millions of submissions per week.
SOURCE TMX Group Inc.