Bank of Canada | Glossary | Derivatives Compass

The Bank of Canada is Canada's central bank. Under the Payment Clearing and Settlement Act, it designates and oversees financial market infrastructures that can pose systemic risk.

It designates two kinds of systems: those that can pose systemic risk (systemically important) and those that can pose payments system risk (prominent). Among derivatives clearing houses, CDCC's CDCS was designated as systemically important in 2012, and LCH Limited's SwapClear in 2013.

NI 94-101 excludes transactions to which the Bank of Canada is a party from the clearing obligation.

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