The Bank of Canada announced today that it has temporarily expanded the list of collateral eligible for Special Purchase and Resale Agreements transactions, as a way of boosting liquidity.

The Bank announced that it is temporarily expanding the list of eligible collateral, “As part of its continuing provision of liquidity in support of the efficient functioning of financial markets.”

In addition to accepting Government of Canada securities as collateral for SPRAs, the Bank will now also accept all securities that are already eligible as collateral for the Bank’s Standing Liquidity Facility, provided to participants in the Large Value Transfer System. The expanded collateral list is effective until further notice.

Collateral used in SPRA transactions will be subject to the same margin requirements as those applicable in SLF transactions, it noted.

A full list of securities eligible as collateral under the Bank’s SLF, as well as the margin requirements that apply, is available at:
http://www.bankofcanada.ca/en/financial/securities.pdf.