Since the Global Financial Crisis, collateral management has shifted from primarily a credit risk mitigation process of managing assets pledged by one party to another to focusing on capital optimization. Recognizing the potential impact of this evolution on the efficiency of Canada's fixed income market, the Canadian Fixed-Income Forum (CFIF) today announced the establishment of the Collateral Infrastructure and Market Practices Advisory Group (CIMPA). CIMPA will promote the well-functioning of the Canadian securities and financing markets through improved operational efficiency, reduced market fragmentation, and industry coordination on related issues and initiatives. The goals are to:
- improve interconnectedness, standardization, and automation of securities flows;
- support market functioning through promotion of best practices for clearing, settlement, margining and risk management;
- facilitate broad adoption of the recently introduced Canadian Collateral Management Service (CCMS), Canada’s first tri-party service launched by TMX and Clearstream;
- provide an information hub on Canadian collateral developments;
- build consensus on relevant issues.
CIMPA is comprised of senior representatives from buy- and sell-side firms, custodians, prime brokers, and infrastructure providers and is co-chaired by Nicholas Chan (Managing Director and Head of Financial Resource Management, BMO Capital Markets) and Harri Vikstedt (Senior Policy Director, Market Committees and Initiatives, Bank of Canada).
Information on CIMPA’s activities, including its objectives and organization, membership, meeting dates, agendas, and minutes, is available on the newly established CIMPA webpage.
For further information, please contact:
Managing Director and Head of Financial Resource Management
BMO Capital Markets
Senior Policy Director
Market Committees and Initiatives
Financial Markets Department
Bank of Canada
Media Relations
Bank of Canada