Contingent Term Repo Facility

Learn about the facility; get information on its operations and reporting; and find key contacts and related notices.

Facility details

The Contingent Term Repo Facility (CTRF) is the Bank of Canada’s repurchase agreement (repo) facility designed to counter severe market-wide liquidity stresses and to support the stability of the Canadian financial system. The CTRF is activated and deactivated at the Bank’s discretion. When activated, the facility offers Canadian-dollar liquidity to eligible non-bank financial institutions (NBFIs) and primary dealers for set terms of up to one month. Eligible securities for CTRF transactions include securities issued or guaranteed by the Government of Canada or a provincial government. The Bank periodically tests this facility to ensure operational readiness, even when the facility is not active.1

Who can participate

To be eligible to participate in the CTRF, prospective counterparties must:2

• show significant activity in Canadian-dollar fixed-income or money markets, as determined by the Bank based on asset size or repo activity
• undergo a review of their current regulatory oversight—the Bank will review prospective counterparties to determine their eligibility; the extent of this review depends on whether counterparties are subject to financial or market regulation at the federal or provincial level
• undergo either a standard risk assessment or a comprehensive risk assessment, depending on the Bank’s evaluation of their regulatory oversight status

How to participate

Interested entities can the Bank for more information about the CTRF. To participate, prospective counterparties must submit an application to the Bank by  . The Bank reviews applications to confirm applicants meet the eligibility requirements to become an approved counterparty. While prospective counterparties can apply at any time, regardless of the activation status of the CTRF, approval and onboarding could be lengthy processes. Therefore, interested parties are encouraged to submit their application before the CTRF is activated.

Once approved, counterparties must sign the Bank’s Master Repurchase Agreement.

Applicants that have already been approved and onboarded as counterparties do not need to reapply when the facility is reactivated. Note that the Bank retains the right to revise its eligibility requirements and previous approvals at any time.

When the CTRF is activated, the Bank will release a call for tender around 9:30 a.m. (ET) on the website and in the Bank of Canada Auction System (BCAS) each business day. Approved counterparties can access the facility by placing a bid for the amount and term they are seeking prior to the deadline of 11 a.m. (ET). After the operation is completed, approved counterparties who were granted liquidity will enter their eligible securities in the Bank’s Collateral Management System. For all operational details, please see the full terms and conditions of this program. The Bank reserves the right to adjust the terms and conditions of the CTRF at its discretion.

Operations (and operational readiness tests)

To support preparedness, the Bank conducts periodic, preplanned operational readiness tests of the CTRF. These routine tests are not related to market conditions, do not signal any change in the Bank’s risk assessment and do not indicate that activation of the facility is expected.

Upcoming operations

Details for the next operation will be provided in this table one week prior to the operation date.

Results

Results will be updated in this table shortly after each operation.

Reporting

Results will be published promptly in BCAS and on the website after the operation. Participants can also view their individual bid outcomes directly in BCAS.

Every Friday, outstanding CTRF transactions are reported at an aggregate level on the Bank’s weekly balance sheet under “Securities purchased under resale agreements.” This line item also includes any outstanding repo amounts from other market operations such as the Bank’s Term Repo Program. Additionally, outstanding repo transactions are reflected at an aggregate level in the Bank’s monthly, quarterly and annual financial statements.3

Note that for confidentiality, the names of individual counterparties are not published.

Key contacts

Markets and Banking Department
Bank of Canada

Director
Markets and Banking Department

Director
Markets and Banking Department

Policy and Operations Advisor
Markets and Banking Department