In my remarks today, I will describe the key characteristics of the MBF sector, examine potential risks associated with it and discuss the policy options being considered to address these risks.
I will conclude with comments on an important aspect of the reform agenda for this sector, which is the move to strengthen market infrastructure through greater use of central clearing services for derivatives and repo transactions. First, however, I want to start with a brief summary of our assessment of the key risks to Canada’s financial system.