Canadian money markets are undergoing a significant change due to the disappearance of Bankers Acceptances (BAs). BAs will no longer be issued by the major Canadian banks after the cessation of the Canadian Dollar Offered Rate’s (CDOR) publication on June 28, 2024. The CFIF BA Transition Virtual Network (BATVN) has been working closely with key stakeholders to ensure the decline of BAs follows an orderly process in order to limit any negative impacts to market functioning.
Based on discussions with BATVN members, Canadian Asset-Backed Commercial Paper (ABCP) was identified as one of the potential alternative products to BAs. Today, CFIF-BATVN published an educational primer on Canadian ABCP, the purpose of which is to provide background information on the structure of the Canadian ABCP market, including how it has changed since the Global Financial Crisis.
This primer does not, and is not intended to, constitute investment or legal advice. It is provided for general information purposes only.
About CFIF
The Canadian Fixed-Income Forum (Forum) is a senior level industry-wide committee established by the Bank of Canada to discuss developments in fixed-income market structure and functioning, market practices, and related policy issues. The goals of the Forum are to:
- enhance the efficiency and resilience of the Canadian fixed-income market;
- improve the quality, clarity and market-wide understanding of Canadian fixed-income trading practices;
- evaluate and propose changes to market infrastructure;
- communicate any recommendations and analysis to oversight authorities, regulators, industry groups and other market participants as needed.
The Forum will not discuss monetary policy or policy issues directly relating to the size and distribution of the federal government’s debt programme which are covered through other fora.
About the BATVN
The BA Transition Virtual Network is co-chaired by Elaine Lindhorst (TD Asset Management) and Charles Lesaux (RBC Capital Markets) and consists of members from close to 30 institutions, primarily representing the major buy-side investors active in BAs. Members include insurance companies, pension funds, money market funds, the major BA issuing banks and their dealers, as well as other relevant stakeholders. Member institutions account for approximately 60% of end-investor BA purchases.
Market inquiries
CFIF Secretariat
Financial Markets Department
Bank of Canada
613‑782‑7913
Media Relations
Bank of Canada
Source(s):
Canadian Fixed-Income Forum