The Canadian Securities Administrators (CSA) issued coordinated blanket orders granting exemptive relief to facilitate eligible investment funds’ participation in the Bank of Canada’s Contingent Term Repo Facility (CTRF), a backstop designed to address severe market-wide liquidity stress. The CTRF can be activated and deactivated at the Bank of Canada’s discretion and provides Canadian-dollar funding for terms of up to 30 days against securities issued or guaranteed by the Government of Canada or a provincial government. The CSA exemptions remove restrictions that would otherwise have impeded eligible investment funds, including funds exposed to Canadian-dollar money market and fixed income securities, from using the CTRF as a liquidity risk management tool during severe market conditions. The relief is implemented through coordinated blanket orders across multiple provincial and territorial jurisdictions.
Canadian Securities Administrators 2025-07-24
Canadian Securities Administrators grant blanket exemptions to enable eligible investment funds to access the Bank of Canada’s Contingent Term Repo Facility
The Canadian Securities Administrators issued blanket orders granting exemptive relief for eligible investment funds to participate in the Bank of Canada’s Contingent Term Repo Facility (CTRF). The CTRF provides Canadian-dollar funding for up to 30 days against government securities to address severe market-wide liquidity stress. This relief removes restrictions on funds exposed to Canadian-dollar money market and fixed income securities, enabling their use of the CTRF as a liquidity risk management tool.