Canadian Derivatives Clearing Corporation launches inaugural SGC Notes subscribed by BMO

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2▲1 ▼0Impact / 5
Summary · why it matters

Canadian Derivatives Clearing Corporation announced the inaugural issuance of its Secured General Collateral Notes program, subscribed by Bank of Montreal. The Series BMO-521 notes received a Prime-1 (sf) rating from Moody's Ratings. The Bank of Canada has added SGC Notes as eligible collateral under its Standing Liquidity Facility to support this new market. SGC Notes are short-term secured instruments collateralized by high-quality debt securities, accessible through The Canadian Depository for Securities. CDCC is working to onboard other eligible banks and dealers as underwriters via the Canadian Collateral Management Service.

Impact on assets 2

Financials▲
Bank of Montreal
BMO
▲ PositiveCapitalrelevance

BMO subscribed to the inaugural SGC Notes, indicating a new secured funding source and positive engagement in the program.

Cloud & Digital Infrastructure▲

Off-coverage companies 2

Canadian Derivatives Clearing Corporationi
Private▲ PositiveCapitalrelevance

CDCC launched the inaugural SGC Notes program, a new product that expands its business and market role.

The Canadian Depository for Securities Limited (CDS)i
Private± MixedCapitalrelevance

CDS is mentioned as the depository for the notes, but the impact on CDS is indirect and limited.