CSA Proposes Amendments for Investment Funds' Access to Bank of Canada's Repo Facility
The Canadian Securities Administrators (CSA) has proposed amendments to investment fund repurchase transactions requirements. The goal is to provide harmonized exemptions for reporting issuer investment funds, facilitating access to the Bank of Canada's Contingent Term Repo Facility (CTRF). This would enable eligible investment funds to better manage their liquidity during periods of severe market-wide stress.
The proposed amendments aim to codify the temporary exemptive relief provided by Coordinated Blanket Order 81-930, which remains in effect without an expiration date in most CSA jurisdictions. However, in Ontario, the relief will expire on January 24, 2027, and will be extended to July 24, 2028 through OSC Rule 81-931.
The proposed amendments also align with recommendations from the International Monetary Fund (IMF) for Canada to strengthen market liquidity and enhance financial system resilience during stress periods. The CSA is inviting comments on the proposed amendments for 60 days, with submissions due by November 16, 2026.