Trade clearing and settlement
All CDS participants use CDSX for:
- clearing and settling eligible Canadian exchange-traded and over-the-counter equity, debt and money market transactions
- settling Canadian exchange-traded derivatives
- broker-to-broker trade matching
- depository/custodial and ledger-keeping
- real-time messaging and flexible interfaces to and from CDS
- continuous net settlement (CNS) and trade-for-trade (TFT) settlement
- settlement in Canadian central bank funds via Large Value Transfer System (LVTS) or Fedwire for U.S. currency transactions.
In addition, CDSX incorporates a comprehensive settlement services risk model (PDF) that guides the management of financial risk resulting from the clearing, settlement and depository services offered to participants.
Additional clearing and settlement-related services include:
- Direct Participant Trade Matching: the Direct Participant Trade Matching service automatically matches direct participant (DP) non-exchange trades entered for settlment in CDSX by deleting the original trades and replacing them with a new confirmed trade. The service supports broker compliance with IIROC Dealer Member Rule 800.49.
- Matched Institutional Trade Interface: the Matched Institutional Trade Interface service enables domestic institutional trades provided through a virtual matching utility (VMU) or other authorized third-party to be seamlessly reported and created in real-time as confirmed non-exchange trades in CDSX®. The service complies with the expected same-day trade matching rule of the Canadian Securities Administrators (CSA).