An example of a least favored involvement is a deposit with a local bank combined with a stop-loss that keeps all the risks in the domestic financial system. Such involvements we would like to discourage.
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.