CanDeal
Encyclopedia
CanDeal is a global online marketplace for Canadian dollar debt securities
. It provides online access to liquidity for Canadian Government Bonds
and money market
instruments. CanDeal’s technology is available to institutional investor
s in Canada, the United States and Europe. CanDeal services participants from offices in Toronto, Ontario and Montreal, Quebec. CanDeal is currently owned by Canada’s Six Major Banks and TMX Group. CanDeal became a member of the Investment Dealers Association of Canada, and was granted Alternative Trading System
status by the Ontario Securities Commission on July 2, 2002.
Domestic Products:
Global Markets available through CanDeal: (operated by Thomson Tradeweb)
instructions (AccountNet) and a suite of utilities to access the warehouse (TradeXpress). CanDeal can also be integrated with leading Order Management Systems
(OMS) using a proprietary API.
The Canadian Capital Markets Association (CCMA) defines Straight-through processing as, “The automated processing of a securities transaction from securities seller through central securities depository
to the securities purchaser to eliminate repetitive data entry, reduce risk of error and speed processing.”
Security (finance)
A security is generally a fungible, negotiable financial instrument representing financial value. Securities are broadly categorized into:* debt securities ,* equity securities, e.g., common stocks; and,...
. It provides online access to liquidity for Canadian Government Bonds
Government bond
A government bond is a bond issued by a national government denominated in the country's own currency. Bonds are debt investments whereby an investor loans a certain amount of money, for a certain amount of time, with a certain interest rate, to a company or country...
and money market
Money market
The money market is a component of the financial markets for assets involved in short-term borrowing and lending with original maturities of one year or shorter time frames. Trading in the money markets involves Treasury bills, commercial paper, bankers' acceptances, certificates of deposit,...
instruments. CanDeal’s technology is available to institutional investor
Institutional investor
Institutional investors are organizations which pool large sums of money and invest those sums in securities, real property and other investment assets...
s in Canada, the United States and Europe. CanDeal services participants from offices in Toronto, Ontario and Montreal, Quebec. CanDeal is currently owned by Canada’s Six Major Banks and TMX Group. CanDeal became a member of the Investment Dealers Association of Canada, and was granted Alternative Trading System
Alternative Trading Systems
Alternative Trading Systems , are United States Securities and Exchange Commission approved non-exchange trading venues specifically designed to match buyers and sellers to find counterparties for transactions, instead of trading large blocks of shares on the normal exchange, a practice that can...
status by the Ontario Securities Commission on July 2, 2002.
History
- June 27, 2001 – CanDeal is created by founding shareholders BMO Nesbitt BurnsBMO Nesbitt BurnsBMO Nesbitt Burns is a Canadian investment firm. Since its formation in 1912, BMO Nesbitt Burns and its predecessor companies have offered aid to investors in meeting their financial goals. In August 1987 the Bank of Montreal took advantage of new banking regulations to acquire Nesbitt Thomson,...
, Basis100 inc., CIBC World Markets Inc.CIBC World MarketsCIBC World Markets is the investment banking subsidiary of the Canadian Imperial Bank of Commerce. The firm operates as an investment bank both in the domestic and international equity and debt capital markets...
, MoneyLine Network Inc., National Bank Financial Inc.National Bank of CanadaNational Bank of Canada is the 6th largest bank and 8th largest financial institution in Canada. The bank's headquarters are in Montreal, Quebec....
, RBC Dominion Securities Inc.RBC Dominion SecuritiesRBC Dominion Securities is the brand used by Royal Bank of Canada for full service brokerage services primarily in Canada. It forms part of RBC's Wealth Management division. Established in Toronto in 1901, it originally focused on government and municipal but diversified into war bonds during...
, Scotia Capital Inc.ScotiabankThe Bank of Nova Scotia , commonly known as Scotiabank , is the third largest bank in Canada by deposits and market capitalization. It serves some 18.6 million customers in more than 50 countries around the world and offers a broad range of products and services including personal, commercial,...
and TD Securities Inc.Toronto-Dominion BankThe Toronto-Dominion Bank , is the second-largest bank in Canada by market capitalization and based on assets. It is also the sixth largest bank in North America. Commonly known as TD and operating as TD Bank Group, the bank was created in 1955 through the merger of the Bank of Toronto and the... - July 8, 2002 – TMX Group acquires a 40% stake in CanDeal.
- September 10, 2002 – CanDeal executes its first trade.
- January 1, 2003 - CanDeal’s founder Jayson Horner leaves TD Securities to become full time President and CEO of CanDeal.
- February 11, 2003 – CanDeal purchases Basis100’s equity interest along with the rights to BasisXchange in Canada.
- March 11, 2003 – CanDeal adds Canada Housing Trust CMB’s (Canada Mortgage Bonds) to its marketplace.
- August 19, 2003 – CanDeal announces that straight-through processing (STPStraight Through ProcessingStraight-through processing enables the entire trade process for capital markets and payment transactions to be conducted electronically without the need for re-keying or manual intervention, subject to legal and regulatory restrictions...
) is available via DealXpress version 1.0. - September 9, 2003 – CanDeal adds Provincial Bond issues to its marketplace.
- October 21, 2003 – CanDeal launches its market data product via TMX Datalinx real-time feed.
- February 11, 2004 – TMX Datalinx and Thomson FinancialThomson FinancialThomson Financial was an arm of The Thomson Corporation, which was one of the world's leading information companies, focused on providing integrated information solutions to business and professional customers...
agree to distribute CanDeal’s real-time market data. - August 18, 2004 – Aggregate volume traded on CanDeal surpasses $100 billion.
- October 19, 2004 – CanDeal announces its single day trading volume surpasses C$1 billion.
- December 1, 2004 – CanDeal trades $10 billion in a single month.
- February 15, 2005 – HSBC Securities (Canada) Inc.HSBC Bank CanadaHSBC Bank Canada, formerly the Hongkong Bank of Canada , is a bank in Canada that is part of British banking giant HSBC - one of the largest banking groups in the world. HSBC Canada is the seventh largest bank in Canada, with offices in every province except Prince Edward Island, and is the...
becomes the 7th liquidity provider on CanDeal. - June 2, 2005 – CanDeal and Thomson Tradeweb announce a long-term technology and co-marketing agreement. Tradeweb will supply CanDeal with its industry-leading trading and STP solutions.
- September 6, 2005 – Casgrain and Company Limited becomes the 8th liquidity provider on CanDeal.
- October 13, 2005 – A Canadian institutional investor executes the first foreign security trade on CanDeal; a U.S. Treasury bond.
- November 1, 2005 – CanDeal launches a new division, Revolution Trading, an electronic inter-dealer trading network.
- February 8, 2006 – Laurentian Bank Securities Inc.Laurentian Bank of CanadaThe Laurentian Bank of Canada is a Schedule I bank in the province of Quebec. . LBC's Institution Number is 039.-History:...
becomes the 9th liquidity provider on CanDeal. - February 28, 2006 – Desjardins Securities joins CanDeal as its 10th liquidity provider.
- May 2, 2006 – Merrill Lynch Canada Inc. joins CanDeal as its 11th liquidity provider.
- July 6, 2006 – JPMorgan Securities Canada is the latest of 12 dealers to provide liquidity in the CanDeal marketplace.
- September 20, 2006 – CanDeal announces that online trading of Canadian debt securities is now available to European institutional investors.
- October 11, 2006 – CanDeal surpasses One-half Trillion in aggregate volume traded.
- August 8, 2007 – CanDeal announces that it has surpassed One Trillion Dollars in aggregate volume traded since inception.
- November 13, 2007 - CanDeal announces that Money Market Trading on its CAMM platform is up over 200% for the second half of the fiscal year.
- January 15, 2008 - Laurentian Bank Securities Joins CanDeal's Money Market Platform.
- February 5, 2008 - CanDeal Introduces New Client Viewer.
- August 20, 2008 - CanDeal Announces Record Canadian Money Market Volumes.
- September 3, 2008 - CanDeal Trading Soars Through New Milestones.
- September 23, 2008 - Participants Set New Volume Record On CanDeal.
- October 1, 2008 - Participants Set Four New Records on CanDeal.
- January 22, 2009 - CanDeal and Charles River Help Canadian Firms Address NI 24-101.
- June 1, 2009 - CanDeal introduces butterfly trading to its marketplace.
- July 6, 2009 - CanDeal Sets Multiple New Records for Canadian Electronic Debt Trading.
- September 14, 2009 - All Primary Dealers participate in CanDeal as Deutsche Bank becomes 12th liquidity provider.
- February 24, 2010 - CanDeal launches mobile fixed income pricing application for institutional professionals.
- April 6, 2010 - CanDeal Sets Multiple Records in First Quarter
- July 7, 2010 - CanDeal Traded Volume Surpass $3 Trillion
- October 4, 2010 - Over $100 Billion Trades on CanDeal in September; Record Quarter and Market Share Attained.
- April 13, 2011 - CanDeal Volumes Surpass $4 Trillion; New Record Month and Quarter Set.
Shareholders
CanDeal's current shareholder members include:- TD Securities Inc.
- RBC Dominion Securities Inc.
- CIBC World Markets Inc.
- Scotia Capital Inc.
- National Bank Financial Inc.
- BMO Nesbitt Burns Inc.
- TMX Group
Liquidity Providers
All 12 Primary Dealers participate on CanDeal:- Bank of America Merrill Lynch
- BMO Capital Markets
- Casgrain & Company Ltd.
- CIBC
- Desjardins Securities
- Deutsche Bank
- HSBC Canada
- Laurentian Bank Securities
- National Bank Financial
- RBC Capital Markets
- Scotia Capital
- TD Securities
Trading
CanDeal provides institutional investors with online access to liquidity for Canadian debt securities as well as access to global marketplaces in the United States and Europe operated by Thomson Tradeweb. CanDeal utilizes the “Request for Quote” (RFQ) trading protocol to trade the most active government securities and a commingled “Inventory” based trading protocol for less active money market instruments. CanDeal created a multi-dealer Limit Order protocol for trading fixed income securities. CanDeal has developed the ability for clients to simultaneously query multiple dealers for BA’s, BDN’s and Term Deposits; then execute trades with one or more respondents using a single-click (CAMM-RFQ).Domestic Products:
- Canadian debt securities (CAN)
- Government of Canada bonds
- Canada Housing Trust CMB’s
- Active Provincial bonds
- Government of Canada Treasury Bills
- Canadian Money Market (CAMM)
- Banker’s Acceptances, Bank Deposit Notes, Term Deposits, Provincial Bills, Crown Corporations, Commercial Paper, ABCP
Global Markets available through CanDeal: (operated by Thomson Tradeweb)
-
- US Treasuries
- US Agencies
- US Commercial Paper
- US Corporates
- Mortgage-backed TBA’s
- Pfandbriedfe/Covered Bonds
- Agency Discount Notes
- Euro Commercial Paper
- European Government Bonds
- Interest Rate Swaps (US$ and Euro)
- Credit Default Swaps
Compliance
CanDeal creates a permanent and retrievable archive of all transactions that includes: an electronic trading blotter; detailed audit log; snapshot of the dealing screen as it appeared at the time the trade was accepted; and a comparative summary of dealer activity for any given range of dates.Straight-Through Processing (STP)
To facilitate straight-through processing of trades, CanDeal provides access to a data warehouse of client settlementSettlement (finance)
Settlement of securities is a business process whereby securities or interests in securities are delivered, usually against payment of money, to fulfill contractual obligations, such as those arising under securities trades....
instructions (AccountNet) and a suite of utilities to access the warehouse (TradeXpress). CanDeal can also be integrated with leading Order Management Systems
Order management system
An order management system, or OMS, is a computer software system used in a number of industries for order entry and processing.- Electronic commerce and catalogers :...
(OMS) using a proprietary API.
The Canadian Capital Markets Association (CCMA) defines Straight-through processing as, “The automated processing of a securities transaction from securities seller through central securities depository
Central Securities Depository
A Central Securities Depository is an organization holding securities either in certificated or uncertificated form, to enable book entry transfer of securities. In some cases these organizations also carry out centralized comparison, and transaction processing such as clearing and settlement of...
to the securities purchaser to eliminate repetitive data entry, reduce risk of error and speed processing.”
Market data
CanDeal’s market data continuously provides a complete, timely and accurate “bid and ask” price of how each bond on CanDeal is currently being valued by 12 of Canada's primary dealers. CanDeal receives up to 500,000 dealer prices each day, which are processed through CanDeal’s proprietary algorithms to create a dynamic view of the entire Canadian government bond market. Institutional trades on CanDeal from Canada, the United States and Europe are continuously validating the quality of CanDeal’s data.Analytics
Calculators and a robust set of charting analytics are built into the trading platform. CanDeal participants can use these tools, while drawing from CanDeal’s market data, to aid in their pre-trade analysis.Executives
-
- Jayson Horner – Co-Founder, President and Chief Executive Officer
- Tristan Michela - Executive Vice President
- Joe D’Alessandro – Chief Technology Officer
- Aubrey Baillie – Chief Financial Officer
- Shirley Gallant – Managing Director, Market Operations & Client Services
- Philip Wright – Managing Director, Canadian Sales
- Michael White - Global Product Head, Government Securities
Memberships
CanDeal is a member of the following organizations:- Investment Dealers Association of Canada (IDA)
- Investment Industry Association of Canada (IIAC)
- Canadian Investor Protection FundCanadian Investor Protection FundThe Canadian Investor Protection Fund is a not-for-profit corporation created by the Canadian investment industry in 1969 to protect investor assets in the event of a CIPF member's bankruptcy. The CIPF is funded by CIPF members which consist of approximately 200 investment dealers in Canada....
(CIPF)