Canada extends collateral list to aid market

In a move to shore up liquidity, the Bank of Canada said Wednesday that it will expand the list of collateral eligible for use in special purchase and resale agreements.

Special purchase and resale agreements occur when the central bank buys government securities from primary dealers before reselling them the next business day.

The central bank said the move to expand the list was "part of its continuing provision of liquidity in support of the efficient functioning of financial markets." It