Effective April 25, 2022, the maximum total bidding amount across all securities in the Securities Repo Operation (SRO) will increase to $5,000 million for each counterparty. The maximum bid rate will remain at 10 basis points below the target for the overnight rate. The Overnight Reverse Repo (ORR) operation counterparty limit will likewise increase to $5,000 million, less any amount the counterparty has transacted that day in the Bank’s SRO. ORR operations will continue to be conducted at the target for the overnight rate. Operation times for both the SRO and the ORR remain unchanged, with the SRO conducted at 9:30am-10:00am ET and the ORR conducted at 10:30am-10:45am ET. Each counterparty’s ORR limit will continue to be provided ahead of the ORR operation based on the individual counterparty’s SRO allocation from that day.
The Bank conducts SROs to provide a temporary source of specific Government of Canada nominal bonds and treasury bills to primary dealers to support liquidity in the securities financing market. As previously announced, ORR operation conducted at the fixed rate, full allotment basis helps to reinforce the Bank’s target for the overnight rate in a floor system with large settlement balances. The terms and conditions of the SRO and the Overnight Reverse Repo Operations: Terms and Conditions provide operational details for each operation.
The Bank will monitor these operations and market developments. At its discretion, the Bank will adjust operation parameters and consider other measures, as warranted, to support its monetary policy objectives in a floor system while promoting market well functioning.