April 9, 2026
Read the terms and conditions of the Contingent Term Repo Facility (CTRF).
Operation details
- CTRF operations will be offered daily when the facility is activated.
- Operations will normally be announced at 9:30 a.m. (ET), with a deadline of 11 am (ET) for participants to submit tenders. The Bank of Canada reserves the right to conduct operations earlier or later in the day.
- Each CTRF operation will have a daily CTRF repo rate, which will be released through a call for tender (CFT) published on the Bank of Canada’s CTRF webpage and in the Bank of Canada Auction system (BCAS). Details on the calculation of the daily CTRF repo rate are provided below.
- A maximum of one tender per operation may be submitted by, or on behalf of, each CTRF participant (also referred to as CTRF counterparty).
- The minimum tender amount will be $10 million, with minimum increments of $1 million
- The Bank of Canada reserves the right to accept or reject any or all bids.
Repo rate
- The CTRF repo rate for each operation will be announced on the Bank of Canada’s CTRF webpage and in BCAS 90 minutes before the operation deadline.
- The rate will be equal to the overnight index swap (OIS) rate for the maturity of the operation, plus the higher of (1) 35 basis points, (2) the highest spread over the OIS rate observed in the most recent term repo operation with the closest tenor, or (3) a spread otherwise determined by the Bank of Canada at the time of the operation.
Type of operation
- Fixed-rate, full-allotment auction for a fixed Canadian-dollar (CAD) cash amount through BCAS.
Eligible counterparties
- Financial market participants such as primary dealers, pension funds, insurance companies, private asset managers, and certain investment funds that can demonstrate significant activity in the Canadian fixed income market and that meet the Bank’s eligibility criteria.
- To be eligible to participate in the CTRF, prospective counterparties must demonstrate significant activity, undergo a review of their current regulatory oversight, and undergo a risk assessment that is based on their regulatory oversight status. See the Bank’s CTRF webpage for details.
- Participation in, and eligibility for, the CTRF will ultimately be at the discretion of the Bank of Canada.
- Financial market participants that want to become a CTRF counterparty will be required to complete an application form, and if accepted, will be required to sign the Bank of Canada’s Master Repurchase Agreement before participating in a CTRF operation.
Term
- CTRF operations will have set terms of up to one month. Operations will be structured into four predefined tenors and offered through BCAS (i.e., one-, two-, three- or four- week terms).
Timing of results
- CTRF submitters and CTRF participants will be able to access the outcome of their bids in BCAS. The Bank of Canada will email a confirmation to each CTRF submitter or CTRF participant, setting out the specific terms of the transaction, including the securities.
- Aggregated results will be published on the Bank of Canada’s CTRF webpage, and individual results will be available in BCAS as soon as possible following the auction.
Eligible securities
- Only Canadian dollar-denominated marketable securities that are directly-issued or explicitly guaranteed by the Government of Canada or by a Canadian provincial government, and that are also eligible for the Standing Liquidity Facility. Stripped or residual Government of Canada or Canadian provincial government securities, as well as National Housing Act mortgage-backed securities (NHA MBS), are eligible. Eligible securities must not mature on or prior to the date of maturity of the CTRF transaction.
- Any concentration limits, changes, or exceptions to the above eligible securities will be at the discretion of the Bank of Canada.
Notification of securities to be used
- Counterparties will be required to submit their eligible securities in the Bank of Canada’s Collateral Management System (CMS) dealer interface within 60 minutes of the publication of the operation’s results. The CMS will be used to confirm eligibility, price the securities, and book the transaction. A confirmation of the transaction will be provided by the Bank of Canada.
- The number of securities to be used is limited to a maximum of 20 ISINs per successful bid when using the dealer interface.
- The Bank of Canada may, at its discretion, agree to submit the securities into the CMS on behalf of a counterparty. In such cases, the number of securities to be used is limited to a maximum of 5 ISINs per successful bid.
- Counterparties will be responsible for ensuring that securities comply with the Bank of Canada’s eligibility criteria.
- CTRF submitters will be responsible for the settlement, on the date specified in the final call for tender, of any accepted bids that they have submitted for their own account or on the behalf of another participant and will be liable to the Bank of Canada for any losses incurred as a result of those sales failing to settle in CDSX.
Margins
- Eligible securities will be subject to the same margin requirements as those applicable under the Standing Liquidity Facility (see Margin Requirements).
Margin calls
- Transactions will be subject to margin calls if the value of the posted eligible securities falls below a threshold acceptable to the Bank of Canada. Please refer to the margin call policy.
Interest calculation
- Interest on the funds will be calculated on an actual/365-day basis.
Coupon payments
- All coupon payments received by the Bank of Canada on the securities during the term of the transaction will be kept by the Bank of Canada. The final settlement amount will be adjusted, as required, to account for these receipts in accordance with the Bank of Canada's Master Repurchase Agreement.
Counterparty settlement instructions
- Securities shall be delivered to the Bank of Canada by 16:00 (ET) through CDSX on the settlement day of the CTRF operation, on a delivery of securities versus payment of funds basis.Securities to be delivered shall be confirmed with and priced by the Bank of Canada after the CTRF operation and prior to delivery.
- Bank of Canada’s CDS settlement customer unit identifier (CUID) is BOCB.
- CTRF submitters or CTRF counterparties must provide and verify their Standard Settlement Instructions before taking part in the CTRF.
- For repos facing the Bank of Canada’s BOCB CUID, it is the responsibility of the CTRF submitter, CTRF counterparty or the CTRF counterparty’s custodial agent to book both Buy and Sell legs (near and far) of the repo trade in CDSX. For the far leg, a day prior to maturity/settlement at the latest if possible. See CDS “Trade and Settlement Procedures”, Section 4.4 Page 21.
- CTRF submitters are responsible for the settlement, on the day stipulated in the final call for tender, of any accepted bids that they have submitted for their own account or on the behalf of another counterparty and shall be liable to the Bank of Canada for any losses incurred as a result of those sales failing to settle in CDSX.
Substitution
- CTRF counterparties can process substitutions on an unlimited basis using the dealer interface for settlement on a T+1 basis. For settlement on a same-day basis, participants will need to confirm with the Bank of Canada before 12:00 (ET) by .
- Securities used for substitution must meet the eligibility requirements for the original transaction.
Legal arrangements
- Eligible CTRF counterparties must have made the appropriate legal arrangements with the Bank of Canada.
- The Bank of Canada reserves the right to change the terms of subsequent CTRF transactions by posting a revised version of these terms and conditions.
- Each tender shall be unconditional and irrevocable after the submission deadline.
- The Bank of Canada shall not bear any liability whatsoever for any loss incurred by a CTRF counterparty or any other person arising out of any errors in tenders received, delays in the transmission of tenders, technological failures or interruptions, or events or circumstances beyond the Bank of Canada’s control.
- The Bank of Canada may, in addition to and without prejudice to any rights under the Bank of Canada’s Master Repurchase Agreement, sanction an eligible CTRF counterparty if the Bank of Canada is of the view that the eligible CTRF counterparty breached any of the terms. The sanctions that the Bank of Canada may impose include, without limitation, suspending the eligible counterparty from accessing the CTRF and for counterparties eligible for Term Repo operations from participating in one or more future Term Repo operations and changing, on a temporary basis, the bidding limit applicable to the eligible counterparty for those operations.