In line with its objectives to support core funding markets and to foster the well-functioning of the Government of Canada securities market, the Bank of Canada is announcing the introduction of securities repo operations (SROs).
The SROs will provide a temporary source of Government of Canada nominal bonds and treasury bills to primary dealers to support liquidity in the securities financingmarket. The Bank’s SROs will make a portion of its holdings of these securities available on an overnight basis through repurchase operations.
The Bank’s SROs are consistent with best practices at other central banks and with recommendations from the Bank for International Settlements.
The Bank will launch the securities repo operations on July 27, 2020, at which point it will suspend the current Securities Lending Program. SRO terms and conditions provide operational details. The Bank, at its discretion, may adjust the size, pricing and other parameters of the program to achieve its objectives.