Bank of Canada announces changes to securities repo operations

In line with its objectives to support core funding markets and to foster the well-functioning of the Government of Canada securities market, the Bank of Canada is announcing changes to securities repo operations (SROs).

The maximum total bidding amount across all securities in the SRO will increase to $1,000 million for each eligible participant effective Monday, January 25, 2021. At the same time, the maximum bid rate will be set at 15bps. The Bank, at its discretion, may adjust the size, pricing and other parameters of the program to achieve its objectives. The terms and conditions of the SRO provide operational details. 

The SROs provide a temporary source of Government of Canada nominal bonds and treasury bills to primary dealers to support liquidity in the securities financing market. The changes announced today are in line with the Bank’s intention at the start of the program in July 2020 to increase the availability of its holdings of Government of Canada securities through the SRO.

The Bank continuously monitors market conditions and remains committed to providing the required support for the well-functioning of the Canadian securities financing market.


Director
Financial Markets Department
613-782-7245


Financial Markets Operations and Policy Advisor
Financial Markets Department
613-782-7172


Director
Financial Markets Department
403-956-4532


613-782-8782

Content Type(s): Press, Market notices