In support of its mandate as the resolution authority for Canadian financial market infrastructures (FMIs), the Bank of Canada has entered into a memorandum of understanding (MOU) with the Autorité des marchés financiers, the British Columbia Securities Commission and the Ontario Securities Commission. As resolution authority, the Bank is responsible for developing plans to respond to the unlikely failure of a Canadian designated FMI. The Bank also has the power in a crisis to take temporary control of a failing FMI to limit the impact on Canada’s financial system and economy.
The MOU establishes a framework for cooperation, coordination, consultation and information sharing on matters related to the resolution of:
- the CDSX system or its operator, the CDS Clearing and Depository Services Inc.
- the Canadian Derivatives Clearing Service or its operator, the Canadian Derivatives Clearing Corporation
This MOU complements a previous understanding among the same parties to cooperate in fulfilling their respective oversight mandates for promoting the safety and efficiency of these two FMIs.
For further information, please contact:
Bank of Canada