The Investment Dealers Association of Canada has announced the establishment of a committee to review issues relating to the daily survey of cash bankers’ acceptances rates.

The committee will be comprised of representatives from each of the IDA, the Bank of Canada and one member from each of the nine institutions that participate in the daily survey.

Current participants in the survey include BMO Nesbitt Burns, Scotia Capital Inc., RBC Dominion Securities, TD Securities Inc., National Bank Financial, CIBC World Markets, Merrill Lynch Canada, Hongkong Bank of Canada, and Deutsche Bank Securities.

Responsibility for the survey will remain with the IDA. Ian Russell, senior vice president, Industry Relations and Representation will serve as committee chair, and will report to the board of directors as required.

The committee will meet at a minimum of semi-annually, with additional meetings as required, to discuss any issues brought to the attention of the committee relating to the posted survey rates. The committee recognizes the need for a smooth functioning market setting that can be used by different markets.

Other interested parties who would like to make a presentation to the committee or add items to the agenda should contact either the IDA or any other member of the group. Minutes from the committee meetings will be posted on the IDA Web site.

The daily survey of money market rates is derived from bid side prices provided by survey participants. The survey rate is the recognized benchmark index for bankers’ acceptances with a term-to-maturity of one year or less. The daily survey of money market rates also serves as the reference for other rates used in money market and derivative contracts and for the final settlement price for the BAX futures contracts.