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BMO issues first SGC Notes
02 July 2026 Canada
Image: Ronak/stock.adobe.com
Canadian Derivatives Clearing Corporation (CDCC) has announced that the inaugural issuance for the Secured General Collateral (SGC) Notes programme was executed and subscribed by the Bank of Montreal (BMO).
The Bank of Canada announced in June 2024 the inclusion of SGC Notes as eligible collateral under its Standing Liquidity Facility.
As of January 2025, the Bank is operationally ready to accept SGC Notes as collateral. This milestone represents a significant step in supporting the development of this new market.
As an eligible instrument within the Canadian Depository for Securities (CDS), SGC Notes are easily accessible and investors can purchase the notes directly from the subscriber.
Nick Chan, head of Capital Allocation & Management, BMO Capital Markets, says: “SGC Notes are a meaningful step forward for Canada’s short-term funding and collateral markets.
“BMO is proud to help bring this innovation to market to help expand high-quality secured investment options and strengthen system liquidity.”
CDCC is currently working with other eligible banks and dealers, who are enabled on the Canadian Collateral Management Service (CCMS), to be onboarded as underwriters in the SGC Notes programme.
For the subscriber banks and dealers, SGC Notes provide a funding solution through CDCC’s capital markets infrastructure which has demonstrated reliability and resilience.
Marton Szigeti, head of collateral, lending, and liquidity solutions at Clearstream, adds: “We are proud that the Canadian Collateral Management Service, jointly operated by Clearstream and TMX PTI, provides the modern and efficient infrastructure that supports this innovation.
“Our platform is engineered to deliver the seamless collateral management capabilities that subscribers like BMO depend on. By providing the critical backbone, we are reinforcing our commitment to fostering greater liquidity, security, and resilience across the Canadian financial landscape.”
The Bank of Canada announced in June 2024 the inclusion of SGC Notes as eligible collateral under its Standing Liquidity Facility.
As of January 2025, the Bank is operationally ready to accept SGC Notes as collateral. This milestone represents a significant step in supporting the development of this new market.
As an eligible instrument within the Canadian Depository for Securities (CDS), SGC Notes are easily accessible and investors can purchase the notes directly from the subscriber.
Nick Chan, head of Capital Allocation & Management, BMO Capital Markets, says: “SGC Notes are a meaningful step forward for Canada’s short-term funding and collateral markets.
“BMO is proud to help bring this innovation to market to help expand high-quality secured investment options and strengthen system liquidity.”
CDCC is currently working with other eligible banks and dealers, who are enabled on the Canadian Collateral Management Service (CCMS), to be onboarded as underwriters in the SGC Notes programme.
For the subscriber banks and dealers, SGC Notes provide a funding solution through CDCC’s capital markets infrastructure which has demonstrated reliability and resilience.
Marton Szigeti, head of collateral, lending, and liquidity solutions at Clearstream, adds: “We are proud that the Canadian Collateral Management Service, jointly operated by Clearstream and TMX PTI, provides the modern and efficient infrastructure that supports this innovation.
“Our platform is engineered to deliver the seamless collateral management capabilities that subscribers like BMO depend on. By providing the critical backbone, we are reinforcing our commitment to fostering greater liquidity, security, and resilience across the Canadian financial landscape.”
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