The Bank of Canada, jointly with l'Autorité des marchés financiers (Quebec), British Columbia Securities Commission and Ontario Securities Commission, today published draft policy guidance related to the Bank’s risk management standards for designated Canadian financial market infrastructures (FMIs).
Effective immediately, the Bank of Canada has added haircuts to the over 35 year maturity category for Government of Canada and Government of Canada Guaranteed securities.
The Department of Finance and the Bank of Canada will begin bilateral discussions with market counterparties with respect to changes to the margining policy for the cross-currency swaps used to fund Canada’s foreign exchange reserves held in the Government’s Exchange Fund Account.
Since 2004, the Bank of Canada has carried out an annual qualitative survey to assess client activity in Canadian foreign exchange (FX) hedging as reported by banks.
The Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank, the Federal Reserve, and the Swiss National Bank announced on Thursday that their existing temporary bilateral liquidity swap arrangements are being converted to standing arrangements, that is, arrangements that will remain in place until further notice.