The Collateral Infrastructure and Market Practices Advisory Group (CIMPA) and Canadian Depository for Securities (CDS), on behalf of the Canadian Fixed-Income Forum (CFIF), announce the start of a trial period for the framework on a fee for failing to settle Government of Canada (GoC) bond and T-bill transactions.
During the first stage of the trial, which will begin on September 8 and last for a minimum of 18 months, fails and associated fail fees are calculated, but not charged or disbursed. Fails statistics will be published on the CDS website, and CDS participants will also be able to access reports on failed transactions and the associated indicative fail fee invoices. CIMPA has also published an updated FAQ document about the trial period and the fail fee framework more generally. Any subsequent decision to activate fail fee payments, either as part of a second stage following the initial 18-month period or permanently, will be made by CFIF.
About CIMPA
CIMPA is an industry-wide working group created under CFIF to promote the well-functioning of the Canadian securities and financing markets. A CIMPA Fail Fee Subgroup has been established to administer the governance of the fail fee framework.
For further information, please contact:
Principal Economist
Markets and Banking Department
Bank of Canada
Managing Director and Head of Collateral Management and Funding Canada
Scotiabank
Media Relations
Bank of Canada