The Bank of Canada, in its role as fiscal agent for the Government of Canada, is announcing updates to the Terms and Conditions governing the morning auction of Receiver General (RG) cash balances.
The morning auction of RG balances is part of how the government manages its Canadian-dollar cash balances. The auction ensures sufficient cash is available to meet the government’s operating and liquidity needs while allowing excess cash balances to be invested in a prudent, cost-effective manner that earns a competitive, market-driven rate of return.
The amendments to the Terms and Conditions are the result of an internal review and feedback from morning RG auction participants. The changes will reduce operational friction and improve the efficiency of the facility. Specifically, the amendments:
- streamline the assessment process for potential participants
- extend the cut-off time for settlement to 15:30 ET
- clarify the treatment of securities issued by government-sponsored entities
- allow for netting and rolling of positions by removing the requirement to repay the current day’s position before seeking another
The new Terms and Conditions will come into effect on Feb 1st, 2026. The existing Terms and Conditions will continue to apply to transactions entered into prior to that time.
Royal Bank of Canada Investor Services—acting as agent for the Government of Canada and each participant—has also updated the Tri-Party Repo Service Agreement. Auction participants will be required to sign the updated agreement before the new Terms and Conditions come into effect.
For further information, please contact:
Director
Financial Markets Department
Bank of Canada
Director
Funds Management Division
Department of Finance Canada