Market notices

In December 2005, the Bank of Canada sent those banks that are members of the Canadian Foreign Exchange Committee (CFEC) a questionnaire that focused on the foreign exchange hedging activities of their corporate customers.

Today, a Summary of Comments/Debt Strategy 2006/07 is being published on the Bank's website in conjunction with the release of the government's Debt Management Strategy for 2006/07 on the Department of Finance's website.

n the implementation of monetary policy, the Bank of Canada sets a target for the overnight interest rate. This rate is defined as the rate at which major participants in the money market borrow and lend one-day funds to each other.

Effective 13 December 2005, HSBC Securities (Canada) Inc./HSBC Bank Canada will become a primary dealer for Government of Canada marketable bonds and treasury bills, respectively, and Desjardins Securities will become a primary dealer for Government of Canada marketable bonds.

The revised Terms of Participation and the Standard Terms for Government of Canada Auctions, prepared jointly by the Department of Finance and the Bank of Canada on behalf of the Government of Canada, will become effective on 13 December 2005.

A consultation document on issues relating to the design and structure of the government's domestic bond program for the fiscal year 2006/07 and beyond, prepared jointly by the Department of Finance and the Bank of Canada, is being made public today.

The revised Terms of Participation and the Standard Terms for Government of Canada Auctions, prepared jointly by the Department of Finance and the Bank of Canada on behalf of the Government of Canada, are being published today.

Beginning on 7 November 2005, the Bank of Canada will be implementing a number of changes directed towards achieving a more timely release of noon foreign exchange rates. These changes will be implemented on a six-month trial basis to allow the Bank to assess whether further refinements are required to ensure that these rates remain an accurate reflection of mid-day rates in wholesale markets.

Today, the findings of the review and Changes to the Government of Canada Debt Distribution Framework are being made public on the Bank's website. The changes will become effective in October 2005, following the update of the Terms of Participation and the Standard Terms for Government of Canada auctions.

In October and November 2004, officials from the Department of Finance and the Bank of Canada consulted with interested parties on issues related to the government's domestic debt program, and the review of the government's debt distribution framework.