The Canadian Securities Administrators published proposed amendments that would provide reporting issuer investment funds with harmonized exemptions from certain repurchase transaction requirements. The changes would codify temporary blanket relief granted in 2025, allowing eligible funds to access the Bank of Canada’s Contingent Term Repo Facility and any future repurchase facilities provided for liquidity management. The Contingent Term Repo Facility may provide eligible participants with funding for up to 30 days against securities issued or guaranteed by Canada or a province when the Bank of Canada activates it to address severe marketwide liquidity stress. Access could help investment funds exposed to money market and fixed income securities manage liquidity during such periods. The proposal also supports recommendations from the International Monetary Fund’s 2025 assessment of Canada to strengthen market liquidity and financial system resilience. The existing blanket relief has no expiration date outside Ontario. Ontario plans to extend its relief from Jan. 24, 2027, to July 24, 2028, subject to approvals, and the proposed amendments are expected to take effect by the end of that extension.
2026-09-17Canadian Securities Administrators
Canadian Securities Administrators launch consultation on harmonized repurchase transaction exemptions for investment fund access to Bank of Canada liquidity facilities
The Canadian Securities Administrators proposed harmonized exemptions from certain repurchase transaction requirements for reporting issuer investment funds. The amendments would codify temporary relief that enables eligible funds to use the Bank of Canada’s Contingent Term Repo Facility and future repurchase facilities to manage liquidity during severe marketwide stress.