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August 15, 2024

Canadian Foreign Exchange Committee

CFEC is a senior level industry-wide committee to facilitate the sharing of information between market participants and the Bank on the foreign exchange market.

CORRA: Explaining the rise in volumes and resulting upward pressure

Staff Analytical Note 2024-21 Boran Plong, Neil Maru
On May 27, 2024, the settlement period for trading GoC bonds in the secondary market in Canada moved from two days to one. This shortened time for settling secondary cash bond trades caused CORRA volumes to rise significantly, and they have remained elevated since. This combined with the skew in demand for funding has pressured CORRA higher. We find no indications that any other factors are contributing to the most recent pressures on CORRA.

Crystal Arnburg

Crystal Arnburg is the Regional Director (Economics) at the Bank of Canada’s Regional Office for British Columbia and the Yukon.
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