As part of its continuing provision of liquidity in support of the efficient functioning of financial markets, the Bank of Canada announced today that it is temporarily expanding the list of collateral eligible for use by market participants in Special Purchase and Resale Agreements (SPRAs).
In addition to accepting Government of Canada securities as collateral for SPRAs, the Bank will now also accept all securities that are already eligible as collateral for the Bank's Standing Liquidity Facility (SLF) provided to participants in the Large Value Transfer System.
The expanded collateral list is effective until further notice.
Collateral used in SPRA transactions will be subject to the same margin requirements as those applicable in SLF transactions.
A full list of securities eligible as collateral under the Bank's SLF, as well as the margin requirements that apply, is available at: http://www.bankofcanada.ca/en/financial/securities.pdf
For background information on SPRA transactions, see: http://www.bankofcanada.ca/en/pdf/target_170507.pdf