In fact, the Bank of Canada has joined a multilateral arrangement for the co-operative oversight of LCH.Clearnet’s SwapClear, a global central counterparty based in London, England, and the dominant counterparty for clearing Canadian interest rate swaps.19 As I noted, the Bank is working closely with other agencies at the federal and provincial levels to implement the new global standards within a framework that is best suited for Canada.
The process of valuing and transferring the loans is a painstaking one which is taking longer than everyone hoped, but it is well under way, and the discounts on the initial tranches have been large – over 50 per cent in the first two tranches on average.