Toronto-based TMX Group Ltd. is combining the back-office functions of its clearing businesses, the Canadian Depository for Securities Ltd. (CDS) and the Canadian Derivatives Clearing Corp. (CDCC), in an effort to cut costs.
TMX Group announced the first phase of a “business integration initiative” on Wednesday that will focus on the CDS’s and the CDCC’s technology and operations. As part of the move, Glenn Goucher, president and chief clearing officer at the CDCC will also become president of the CDS.
The initiative aims to “align, simplify and integrate relevant systems and operations to both lower the cost base and make TMX [Group] more nimble and adaptive,” the firm states in the announcement.
Furthermore, putting the two divisions under a single leader will harmonize their integration efforts, TMX Group notes.
“To ensure that we are best positioned to fully realize our vision of being a technology driven solutions provider that puts clients first, we must first become an integrated TMX [Group],” says Lou Eccleston, TMX Group’s CEO, in a statement. “This initiative represents necessary initial steps toward aligning and simplifying our systems and processes and moving to implement a framework for continuous, client-driven innovation across all parts of our business.”
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