CFN News, Issue 7 - April 23, 2018

Previous Issue

Issue 6 - January 3, 2018



Finally, spring is upon us. And like the crocuses and tulips that have begun to sprout, at CANNEX we are seeing the fruits of the seeds planted in 2017. A record number of new issuers and dealers were welcomed to the CANNEX Financial Network (CFN) last year, and their GIC application activity is already blooming. There was much cross pollination on the network too, with dealers and issuers expanding and diversifying their relationships with one another. This has also yielded new shoots of GIC activity in the first quarter of 2018.
GIC Processing on CFN - Q1 2018 at a Glance
  • 221,337 GIC applications processed - a 30% increase over Q1 2017
  • Total value of GICs processed $11.6 billion - a 22% increase over Q1 2017
  • Average GIC application size $52,260
  • 97.4% of GIC applications were less than or equal to $100,000
  • 36% of GIC applications were invested in a 1 year term product

Definitely, there may be other contributing factors at play in this heady first quarter of 2018. The Bank of Canada's increase in the overnight rate, on January 17, 2018, to 1 and 1/4 per cent is likely among them. The bustle of investing that typically happens with every RRSP season would be a logical consideration. Money seeking shelter from frothy equity markets might be another factor. While we are seeing a bit of settling in equity markets now, February and March saw considerable volatility - see year to date chart of the VIX, CBOE's Volatility Index, below. The VIX, sometimes called the "fear index", is a widely used measure of forward looking or expected volatility in the stock market over the near term (30 days). And lastly, in the list of "contributing factors", there are the retirees and pre-retirees of the Baby Boomer generation that are increasingly shifting their assets to a heavier weighting of fixed income securities.

Network Notices

We are thrilled to introduce our newest Participants to transact on the CANNEX Financial Network.
New Dealer:
Worldsource Financial Management Inc. 
New Issuer: Innovation Credit Union

Let us know if we can help with introductions to any of our Issuers or Dealers.  Click here for the full list of Issuers and Dealers that use CFN, CANNEX's automated GIC/term deposit application processing and administration service.

CFN Client News

CU CUMIS Wealth Holdings LP and Desjardins Group Announce Closing of Aviso Wealth Inc. Merger
April 3, 2018

Canaccord Genuity Group Inc. welcomes Stanley Asset Management to its Canadian wealth management business 
April 2, 2018

Canaccord Genuity Group Inc. continues expansion of its Canadian wealth management business with the addition of MLD Wealth Management Group (PDF)
March 12, 2018

Edward Jones announces new country leader for Canada
March 8, 2018

Canaccord Genuity Group Inc. welcomes the Cash Management Group led by Andrew Johns to its Canadian wealth management platform (PDF)
February 13, 2018

Bridgewater Bank chooses SIT as its software vendor and joins the CANNEX Financial Network
January 16, 2018

Coast Capital CEO to step down after notable tenure
January 10, 2018

Concentra Bank names Don Coulter as President and CEO
January 10, 2018

Industry News, Links and Good Reads

Bank of Canada maintains overnight rate target at 1 1/4 per cent (PDF)
April 18, 2018

Bank of Canada - Monetary Policy Report April 2018 (PDF)
April 18, 2018

OSFI releases final guideline on total loss absorbing capacity for Canada’s domestic systemically important banks

April 18, 2018

Ontario Securities Commission, Notice 11-780 - Statement of Priorities (PDF)

March 29, 2018

Bank of Canada maintains overnight rate target at 1 1/4 per cent (PDF)
March 7, 2018

Ottawa backs credit unions on "banking" terminology
February 28, 2018

The government proposes to strengthen the Financial Consumer Agency of Canada (FCAC)
February 27, 2018

Bank of Canada - Canadian Interest Rate Lookup

On the Calendar

May 28-30, 2018
CANNEX will be in attendance as a sponsor at the upcoming CAILBA 2018 National Conference and AGMThe conference will be held in beautiful Québec City at the Fairmont Le Château Frontenac.
We hope to see you there!  Register soon, because the hotel conference rate will only be available until April 26th.
Tuesday, May 29, 2018
This year's presentation of the Alex Melvin Leadership Award will be made at the CAILBA National Conference and AGM on Tuesday, May 29th. If you know someone in the Deposit or Insurance industry who fits this description, consider nominating this person for the Alex Melvin Leadership Award.
  • Intrinsically genuine, optimistic and empathetic towards others.
  • Confident, decisive and accountable for the betterment of the industry.
  • Inspiring and motivating cohesiveness among industry participants.
We hope you will join us to celebrate Alex's life and legacy through the presentation of this award.
Wednesday, May 30, 2018

Wednesday, May 30th is the next Bank of Canada interest announcement date for 2018.

Subsequent Bank of Canada interest announcement dates for 2018: July 11*, September 5, October 24* and December 5.

* Monetary Policy Report published
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