CANDEAL

Emal was appointed as CEO in the founding year and, since then, has played a critical role in CanDeal's expansion and standing as a leader in institutional investing of Canadian fixed income and derivatives. Under the stewardship of Jayson and the original consortium of financial institutions, revenue growth has enabled CanDeal to invest heavily in technology development and to establish its data and analytics offerings. Through the development of cutting-edge technology, CanDeal maintains efficient trading processes, and its supplementary offerings of data and analytics can benefit institutional traders.

CanDeal's proprietary technology platform enables market participants to trade Canadian money market instruments and fixed-income derivatives anonymously and efficiently through a single interface. Specifically designed and built for Canadian fixed income, CanDeal provides access to markets and products not available on other global platforms.

It is the only Canadian fixed-income platform that has successfully enabled issuers, both domestic and international, to engage with primary dealers and systematic institutional investors. The original consortium is still integral to development and participation in CanDeal's suite of products. The additional products and services provide a potentially parameterized trading experience for primary dealers and systematic institutional investors alike.

CanDeal's expansion from a data market into Canadian dollar fixed income has indirectly led to the advent of cross-agency trading in the Canadian buy-side market; non-dealer preferred formats have been attractive to clients because they have enabled efficiencies and, in most cases, associated fee reductions.

Electronic trading in Canada has improved clients' trading and credit vetting experiences and advanced the broker-client trading experience. Non-dealer market mechanisms can allow an issuer or agent to bypass a dealer to trade necessary bonds or money market instruments with lower associated risk. In 2002, Horner, after leaving TD Securities to become CanDeal's CEO full-time, was instrumental in the company's growth and innovation.

In fact, just ahead of CanDeal's first trade in September 2002, the TMX Group took a significant percentage of ownership in CanDeal (40% stake), which demonstrated a clear institutional validation of both the trading platform and the financing. CanDeal started with Canadian government bonds and treasury bills and, by 2003, had expanded its product offering to include Canada Mortgage Bonds (CMBs) and provincial bonds.

In the span of two decades, CanDeal has developed and implemented innovative trading capabilities, including request-for-quote (RFQ) offerings and money market screens, thereby significantly elevating its leadership in electronic fixed-income trading in Canada.

Main Features and Offerings of CanDeal

Electronic Trading Platforms

CanDeal offers regulated electronic trading platforms designed explicitly for Canadian-dollar debt securities and derivatives. The platforms support trading in many types of instruments, including government, agency, provincial and corporate bonds, money markets and interest-rate swaps. The platforms are built to enhance pre-trade transparency, speed of execution, and facilitate trade processing. The primary users of these trading platforms are institutional investors and dealers.

Market Access and Partnerships

Although much of CanDeal's focus is on Canadian dollar debt securities, it also offers institutional investors access to non-Canadian debt and titles of derivative markets through its partnerships with firms, including Tradeweb. This collaboration extends the breadth of products available to CanDeal's client base and enhances the dealer's access to liquidity to its client base to the inter-dealer market.

Data and Analytics

Outside its trading platform, CanDeal offers a full suite of data products and services through a separate business unit, CanDeal Solutions, including pricing, advanced data analytics, and a market data hub, DataVault Innovations. These data products and services are intended for use in intricate modelling of credit markets and to provide actionable data that will support clients as they trade or manage their risk.

Regulatory and Licensing

CanDeal operates in a regulated financial environment and complies with applicable laws governing the securities industry, as well as the oversight of a Canadian regulator. While the license numbers are not publicly available, the name or details cannot be provided. However, the firm's ownership structure, which is an equal split between prominent Canadian dealers and the TMX Group, reflects compliance with regulatory standards and processes. Finally, the CanDeal trading platforms are effectively regulated by IIROC and the provincial regulators.

Trading Conditions and Platform Technology

Trading Conditions

CanDeal's trading conditions are designed for institutional clients such as dealers and larger investors. As a result, the usual retail trading conditions, such as leverage and deposit sizes, do not apply to CanDeal's requirements plan. Further, on the platform, trading is in fixed-income and derivative markets, and all trades are negotiated between sophisticated parties. There is also greater variability in trade negotiations.

Platform Technology

CanDeal's technology stack supports Regulated Electronic Trading protocols, including trading facilities such as request for quote (RFQ), which allow buyers to initiate competitive pricing from numerous dealers. Furthermore, the platform provides pre-trade transparency and trade delivery in a single, seamless platform for greater efficiency. Lastly, CanDeal's data and analytics tools include advanced pricing models and market data aggregation to enable better-informed decisions.

Fee Structure

As an institutional electronic marketplace and data provider, CanDeal’s fee structure is not publicly disclosed and is typically negotiated directly with clients. This approach reflects the bespoke nature of institutional trading relationships and the complexity of services offered. There is no available information on deposit fees, withdrawal fees, inactivity fees, or commissions, which are likely embedded within negotiated contracts rather than standardized retail fee schedules.

User Experience and Market Reputation

CanDeal has established itself as a notable brand in electronic trading for Canadian fixed income, despite the lack of public-facing client reviews or ratings. CanDeal's platform accounts for more than 90% of electronic governance, agency, provincial, and corporate fixed-income trading, highlighting its market fascia.

CanDeal is a state-of-the-art trading platform that offers institutional clients valuable solutions, including data services and advanced trading features, powered by market-leading technology. Future clients will have access to a professional, institutional-grade experience focusing on efficiency, market transparency, and regulatory compliance.

The fact that CanDeal does not offer retail features or display them for development purposes indicates that it is optimized for sophisticated participants. Although there are no public criticisms or concerns noted, CanDeal has an excellent reputation, compounded by continued innovation and deep dealer ownership.

Recent Developments

In 2024, as CanDeal continues to evolve, much of the innovation will focus on data services and analytics, in line with market expectations and regulatory requirements. No new news or significant public developments were shared during the period covering 2024-2025, nor were any critical updates shared for 2023.

However, CanDeal's commitment to advancing electronic trading and analytical data reporting will ensure it remains relevant in the Canadian fixed-income markets. CanDeal's distribution partnerships, such as Tradeweb, and its advances in analytics will support CanDeal's adaptability to market and regulatory changes as the market advances, allowing it to remain a leader in the Canadian financial services landscape. 

Conclusion

CanDeal has established a solid presence in Canadian fixed-income electronic trading. CanDeal was formed by a consortium of leading financial institutions and is ultimately owned by TMX for the operational basis of the platform, including regulatory requirements. CanDeal provides governmental and financial institution borrowers with innovative, regulated trading platforms that enable institutional investors to gain the best access to Canadian financial markets and data services. CanDeal is unique in relation to the manner in which a single party extends its dominance.

CanDeal's substantial market share across all categories of Canadian dollar debt securities, together with enhanced trade analytics and comprehensive pre-trade to post-trade processing, have made it an essential partner for dealers and institutional participants. Although the specific trading and fee structures are not quoted here due to their confidential nature, this reflects CanDeal's optimally institutional focus.

Clearly, CanDeal is renowned for its innovation, regulatory robustness, and state-of-the-market leadership. As the financial markets continue to evolve, CanDeal will continue to provide technology grounded in its data-driven approach, thereby fulfilling its essential role in Canada's fixed-income and derivatives program.