Standard & Poor’s Ratings Services Wednesday affirmed its ratings on Canadian Derivatives Clearing Corp., along with several other exchange and clearinghouse groups.
The ratings affirmations come after applying its new group rating criteria for financial institutions to these sorts of firms. For the CDCC, which is the Canadian clearinghouse owned by TMX Group Inc. subsidiary Montreal Exchange Inc., S&P said its ratings on CDCC reflect “its comprehensive and conservative financial safeguard package and associated strong enterprise risk management”.
And, while CDCC is not a strong contributor to the overall profitability of the TMX Group, S&P says that it does consider it be “core” to the TMX. It believes that CDCC “is likely to continue to perform in line with the group’s expectations and that it plays an integral role within the group’s vertically integrated model for the provision of trade and post-trade services throughout the securities processing chain.”
Additionally, S&P affirmed its ratings on Clearstream Banking S.A., Euroclear Bank S.A., Euronext N.V., Switzerland’s SIX SIS AG, and the Depository Trust & Clearing Corp.’s operating subsidiaries, the Depository Trust Company, National Securities Clearing Corporation, and Fixed Income Clearing Corp.