Canadian Derivatives Clearing Corporation – Press Release
CANADIAN DERIVATIVES CLEARING CORPORATION
CLEARS FIRST OTC TRANSACTION THROUGH CONVERGE
BMO CAPITAL MARKETS FIRST TO MARKET
Montréal – November 21, 2006 – The Montréal Exchange (MX) announced today
that its wholly-owned subsidiary, the Canadian Derivatives Clearing Corporation
(CDCC), successfully cleared its first transaction within its newly established overthe-counter clearing service – Converge – and that BMO Capital Markets (BMO
Nesbitt Burns), a Clearing Member of CDCC, is the first member to use this new
clearing facility.
Converge is a clearing service dedicated to the over-the-counter (OTC) derivatives
market. Participants in the OTC market can now register their transactions through
Converge and benefit from a central counterparty clearing solution that offers
superior risk management and operational standards to those prevailing in the
bilateral OTC markets.
For more information on Converge and CDCC, please visit www.cdcc.ca
About the Canadian Derivatives Clearing Corporation
CDCC is a AA rated Standard & Poor's corporation. As the clearinghouse for Canada’s
financial derivative instruments, CDCC ensures the integrity and stability of the market by
acting as central counterparty and guarantor by interposing itself between the buyers and
sellers of exchange-traded and over-the-counter derivatives. In the event of a Clearing
Member default, the obligations of that member towards the remaining Clearing Members
would become the responsibility of CDCC. To ensure its ability to fulfill its obligations under
this guarantee, the Corporation maintains a rigorous Risk Management Program.