Phase one deals with bilateral repo transactions on a single Government of Canada security, although these represent only a small fraction of the market. Phase two, planned for the end of this year, will incorporate cash transactions on fixed-income securities and repo transactions negotiated by intermediaries, including those with anonymous counterparties.
Finally, phase three, proposed for 2013–14, will target general-repo transactions in which any security in a predetermined basket of instruments can serve as collateral. The introduction of this last phase is expected to significantly increase the volume of trades made through the central counterparty, as well as the liquidity and efficiency of the repo market.