The Montreal Exchange (MX) announced today that its wholly owned subsidiary, the Canadian Derivatives Clearing Corporation (CDCC), successfully cleared its first transaction within its newly established over-the-counter clearing service, Converge.

BMO Capital Markets (BMO Nesbitt Burns), a clearing member of CDCC, was 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.

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.