And the Bank is working on how best to implement the G-20 commitment for OTC derivatives – a market in Canada of roughly $ trillion notional, of which $ trillion is interest-rate swaps. Its size and interconnectedness point to its systemic importance and the critical need for rigorous oversight.
One way to build resiliency may be a domestic infrastructure for centrally clearing OTC Canadian-dollar denominated derivatives.4 As market infrastructure supporting the Canadian financial system evolves, the Bank will continue to exercise its oversight role. We must be able to fulfill our legislative responsibility for oversight of major clearing and settlement systems – not just at a moment in time, but over time.