Bank of Canada Announces Activation of the Contingent Term Repo Facility

Following the previous announcement regarding Additional Measures to Support Market Functioning, the Bank is announcing today that it is activating the Contingent Term Repo Facility (CTRF) effective Monday April 6, 2020 and that it will remain open for the next 12 months.

The CTRF offers Canadian dollar funding for a 1-month term to eligible counterparties on a standing, bilateral basis against securities issued or guaranteed by the Government of Canada or a provincial government.

Pricing for the facility will be set at the overnight index swap (OIS) rate of the maturity of the operation plus the higher of (1) 35 bps, (2) the highest spread over the OIS rate on the most recent term repo with the closest tenor, or (3) as otherwise determined by the Bank at the time of the transaction. Detailed terms and conditions can be found on the Bank of Canada’s website.

To be eligible to participate in the CTRF, financial market participants need to demonstrate significant activity in the Canadian dollar fixed income or money markets and be subject to federal or provincial financial sector/market regulation. Participation and eligibility will ultimately be at the discretion of the Bank of Canada. Financial market participants who are interested in accessing the CTRF are asked to submit the CTRF application form to ContingentTermRepoFacility@bank-banque-canada.ca.

The Bank of Canada continues to closely monitor global and domestic market developments and remains committed to providing all the liquidity the financial system needs so that it can continue to serve Canadians.

Scott Kinnear
Director
Financial Markets Department
Bank of Canada
613 782-7723

Mark de Guzman
Director
Financial Markets Department
Bank of Canada
613 782-7245

Lorie Zorn
Director
Financial Markets Department
Bank of Canada
403 956-4532

Media Relations
Bank of Canada
613 782-8782

Content Type(s): Press, Market Notices