ICE’s Winnipeg clearinghouse joins CDS

The clearinghouse for Winnipeg’s commodity exchange has become a member of the Toronto-based national securities depository, clearing and settlement hub, CDS.

ICE Clear Canada, the clearinghouse for ICE Futures Canada, said Wednesday that CDS (Clearing and Depository Services Inc.) had approved its application last week as a clearing member in the category of “regulated financial institution” under the “receiver of credit” classification.

CDS is a support service for Canada’s equity, fixed income and money markets, holding almost $3 trillion on deposit and handling over 190 million domestic securities trades per year.

Membership in CDS will allow ICE Clear Canada to directly manage and deal with the pledging of acceptable securities by its registered clearing participants for purposes of covering margin and clearing fund obligations, ICE said.

ICE Clear Canada was set up in 1998 under the name WCE Clearing Corp., as the designated clearinghouse for what was then known as the Winnipeg Commodity Exchange.

ICE Clear Canada is responsible for reconciliation and clearing of the canola and barley futures and options transactions made on ICE Futures Canada, and for assuring the “financial integrity” of such transactions.

CDS, which also has offices in Montreal, Calgary and Vancouver, is regulated by the Ontario and Quebec securities commissions and the Bank of Canada. It has “working and reporting relationships” with the Canadian Securities Administrators, other provincial securities commissions and the Office of the Superintendent of Financial Institutions.

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