TD and BMO Back New Montréal Exchange Credit Derivatives Product

TD Securities and BMO Capital Markets are acting as liquidity providers for the Montréal Exchange’s new FTSE Canada Bank Credit Index Futures (BCS), Bloomberg reported Tuesday (April 14).

The BCS was initially announced in June 2025 and was launched Wednesday (April 8), the Montréal Exchange said in a Tuesday press release.

It offers market participants a credit derivatives contract that serves as a tool to trade and manage Canadian credit risk, according to the release. It is based on a new FTSE Canadian Bank Credit Spread Index, with the contract isolating the credit spread component of a portfolio of Canadian bank bonds, the release said.

“Combining our premier derivatives franchise with FTSE Russell’s expertise in index-based solutions allows us to provide a tailor-made and transparent Credit product for our clients,” Robert Tasca, managing director, derivatives products and services at the Montréal Exchange, said in the release. “The launch of BCS Futures marks a natural progression from our current yield curve Futures, delivering the Canadian hedge the Credit space has required.”

Anthony Farinaccio, head of Canadian investment grade credit trading at TD Securities, said in the release: “Credit futures offer a practical, efficient way for investors to hedge Canadian credit risk. They provide transparent, scalable risk transfer for institutions, with exchange-traded contracts that simplify execution and reduce operational complexity.”

Alan Bogos, managing director and head of global IG credit trading at BMO Capital Markets, said in the release: “The BCS contract could prove beneficial for those looking to add beta and manage financial sector exposures. The underlying basket represents a clean and clear liquid subset.”

When announcing its plans to launch the FTSE Canadian Bank Credit Index Futures in a June 2025 press release, the Montréal Exchange said this credit derivatives product would be the first of its kind and would meet the evolving needs of market participants.

The Montréal Exchange’s parent company, TMX Group, reported in a February press release that TMX delivered a 16% year-over-year increase in revenue in the fourth quarter, bringing its total revenue to a record $457.8 million. The company attributed its gains to its adaptations to meet the evolving needs of clients.