Copyright © 2024, Canadian Derivatives Clearing Corporation (CDCC). Do not copy, distribute, sell or modify this document without CDCC’s prior written consent.  This information is provided for information purposes only. Neither TMX Group Limited nor any of its affiliated companies guarantees the completeness of the information contained in this publication, and we are not responsible for any errors or omissions in or your use of, or reliance on, the information.  This publication is not intended to provide legal, accounting, tax, investment, financial or other advice and should not be relied upon for such advice.  The information provided is not an invitation to purchase securities listed on Montreal Exchange, Toronto Stock Exchange and/or TSX Venture Exchange.  TMX Group and its affiliated companies do not endorse or recommend any securities referenced in this publication.  Canadian Derivatives Clearing Corporation, Corporation canadienne de compensation de produits dérivés, CCCPD, CDCC, Billet SGC, and SGC Notes are the trademarks of the Canadian Derivatives Clearing Corporation.  The Future is Yours to See., TMX, the TMX design, TMX Group, and Voir le futur. Réaliser l’avenir. are the trademarks of TSX Inc. and are used under license. CDS is the trademark of The Canadian Depository for Securities Limited and is used under license

 

Secured General Collateral Notes (SGC)

CDCC

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Introducing Secured General Collateral Notes

FRTop

Access short-term investments secured by High-quality Liquid Assets


Compatible with investment and regulatory policies

Active standard risk management by CDCC

Bankruptcy remoteness from issuer and TMX and its affiliates  


The Secured General Collateral (SGC) Note is a short-term secured debt instrument fully collateralized by high-quality securities. Developed in consultation with industry, SGC Notes are designed to help foster a highly liquid market through standardization and customization. Compatible with buy-side investment constraints, SGC Notes offer a better balance between dealers’ funding needs and investors’ preferences regarding yield, term, credit quality, risk management and liquidity.
 
SGC Notes will be sponsored by participating CDCC Clearing Members via a general clearing repo and will be available to institutional investors through an ordinary sale on the cash market or through a bilateral repo. The notes will be discounted on issuance and have maturity dates ranging from 30 to 90 days. Investors will receive the note’s face value upon redemption.
 
The value and eligibility of SGC Notes will be managed through CDCC’s robust and active risk management processes.


Benefits

Increasing Liquidity Across the Canadian Listed Yield Curve with LGB   

SGC Notes are currently under review by regulatory bodies and the Canadian Fixed-Income Forum (CFIF) BA-related working group. Please complete the form below to sign up for updates and information on the product’s launch.


Additional Resources 

SGC Notes - Fact Sheet

CDOR to CORRA Transition microsite

High transparency and collateral disclosure standards

Vibrant and liquid borrowing and lending market

About CDCC and CDS

Canadian Derivatives Clearing Corporation (CDCC), a wholly-owned subsidiary of the Montréal Exchange (MX), acts as the central clearing counterparty for exchange-traded derivative products in Canada and a growing range of customized financial instruments. CDCC's role is to ensure the integrity and stability of the markets that it supports.

The Canadian Depository for Securities Limited (CDS), a wholly-owned subsidiary of TMX Group, provides securities market participants with reliable, cost-effective depository, clearing, regulatory and information services.

Lower investment risks

SGC Notes: An innovative cash money-market instrument designed for the BA transition