Market notices

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.

Effective immediately, calls for tenders for cash management bills may be released on any day at either 10:00 a.m. or 4:00 p.m. The addition of a later time to the existing Auction Timetable will increase the ability of the government's cash managers to raise balances on short notice in response to unexpected developments.

In December 2004, the Bank of Canada sent those banks who are members of the Canadian Foreign Exchange Committee (CFEC)1 a questionnaire that focused on the foreign exchange hedging activities of their corporate customers. The questionnaire was similar in structure to one that was circulated to CFEC members in January 2004.

Consultation documents, prepared jointly by the Department of Finance and the Bank of Canada on behalf of the Government of Canada, are being published today.

Starting in 1996, the Bank of Canada began adjusting the relative amounts of Government of Canada treasury bills and bonds held on its balance sheet to more closely approximate the proportions of outstanding government debt.

Effective September 15, for a trial period lasting at least 12 months, minimum bidding requirements and maximum bidding limits will be suspended for auctions of Cash Management Bills (CMBs) which are non-fungible (i.e., do not share a common maturity date with a previously-issued 3-, 6- or 12-month treasury bill). All other provisions of the Terms of Participation will continue to apply to auctions of non-fungible CMBs.

Work on the Bank's Exterior Glazing System Remediation Project has recently begun. This project will involve replacing all the exterior windows and fixtures of the Head Office Towers.