A second discussion paper outlining proposed changes in the rules for, and the surveillance of, auctions of Government of Canada securities was released for public comment today by the Bank of Canada.

This paper is part of a series of initiatives by the Bank and the Department of Finance aimed at reinforcing the integrity and efficiency of the market for Government of Canada debt. The proposals are intended to assure auction participants that the distribution process will not result in an undue concentration of holdings of the auctioned security. They primarily address the procedures for the submission of bids, bidding limits for participants, and enhanced reporting requirements. The paper also evaluates the comments received on the previous discussion paper, released on 19 December 1996, and provides more detailed proposals for further comment.

The Bank of Canada and the Department of Finance are inviting comments on this discussion paper by 31 May 1998.

Copies of the paper are available via Internet: https://www.bankofcanada.ca or from Bank of Canada Publications Distribution at 613 782-8248.

CONTACT

Rob Stewart
Chief
Financial Markets Division
Department of Finance
(613) 992-4468