Indeed, the progress is such that the Bank of Canada now considers SwapClear to be systemically important, and it will become subject to Bank oversight as of 2 April. Designation, which the Minister of Finance agrees is in the public interest, gives the Bank the authority and responsibility to assure itself that SwapClear has appropriate and effective risk controls in place.
The Bank believes that the combination of co-operative oversight of SwapClear and the tools that come with designation will provide the Bank with the ability to effectively control systemic risk within this critical market and thereby improve the resilience of the Canadian financial system.