CDCC and the industry are examining an approach that would allow these entities to directly participate in the CCP in such a way that risk is managed without requiring them to be subject to the same mutualized loss-sharing arrangements. It is important that efforts to determine the exact details of how this arrangement could work in practice be pursued.
The Bank of Canada strongly supports the work currently being undertaken by CDCC and the Investment Industry Association of Canada to increase participation in the CCP. The Bank will continue to be involved to ensure that the solutions put in place meet our high standards for risk management.