Bank of Canada officials urges more central clearing of repos
MONTREAL, March 26
MONTREAL, March 26 (Reuters) - Bank of Canada Deputy Governor Agathe Cote made no mention of monetary policy in a speech on Tuesday that focused on ways Canadian authorities are strengthening financial markets infrastructure to lessen the risk of future crises.
Cote said Canada needed to make more progress in clearing repos, or repurchase transactions, centrally through the Canadian Derivatives Clearing Corporation (CDCS).
"At present, just 10 to 15 percent of repo transactions are cleared through CDCS - not nearly enough to ensure that the markets remain open in times of stress," she warned, adding that authorities were trying to enable pension funds and smaller institutions to clear through CDCS.