Change theme
Change theme

GMF publishes the final framework on a fee for failing to settle GoC securities transactions

The Government of Canada Market Functioning Steering Group (GMF) published today the final framework on a fee for failing to settle Government of Canada (GoC) bond and bill transactions. The final framework has benefited from feedback obtained during the public consultation on the proposed fail fee and subsequent industry outreach. GMF also published the summary of the submissions received during the consultation (including GMF’s responses to the issues raised), as well as updated Q&As for the framework.

Before any decision to fully activate the fail fee it will undergo an extended trial period, starting after the transition to T+1 securities settlement and the implementation of the post-trade modernization initiative at the Canadian Depository for Securities (CDS). The trial will include a period of a minimum 18 months, during which fails and associated fail fees are calculated, but not charged or disbursed. During this period, fail rates will be publicly disseminated and an audit trail of failed transactions and indicative fail fee invoices will be provided to CDS participants. Any subsequent decision to activate fail fee payments, either as part of a second stage of the trial period, or permanently, will be made by the Canadian Fixed-Income Forum (CFIF).

About GMF

GMF was established by CFIF in January 2020 to develop a framework for supporting GoC market functioning in a low-rate environment.  The fail fee forms part of this framework.

For further information, please contact:

Market inquiries

Senior Policy Director
Financial Markets Department
Bank of Canada

Algonquin Capital


Media Relations
Bank of Canada

Content Type(s): Press, Market notices