DEFINITION of 'Canadian Overnight Money Market Rate'

A measure or estimate of the rate at which major dealers are able to arrange financing of securities inventory for one business day. It is compiled by the Bank of Canada at the end of the day through a survey of major participants in the overnight market.

BREAKING DOWN 'Canadian Overnight Money Market Rate'

The Canadian overnight money market rate comprises the weighted-average repo funding cost of major money market dealers. It is a less volatile measure of the collateralized overnight rate than other rates as it represents a greater volume of overnight transactions from more participants.

RELATED TERMS
  1. Purchase and Resale Agreements ...

    An arrangement between the Bank of Canada and dealers whereby ...
  2. Overnight Return

    One of the two components of the total daily return generated ...
  3. Overnight Position

    Trading positions not closed by the end of the trading day and ...
  4. Bank Rate

    A bank rate is the interest rate at which a nation's central ...
  5. Dealer Market

    A dealer market is a financial market mechanism wherein multiple ...
  6. Overnight Index Swap

    An interest rate swap involving the overnight rate being exchanged ...
Related Articles
  1. Insights

    Hungary First Emerging Market to Adopt NIRP

    On Tuesday, the National Bank of Hungary cut its overnight deposit rate to -0.05%, becoming the sixth central bank to charge banks to deposit money with it.
  2. Trading

    Why U.S. Dollars Aren't Accepted in Canada

    Is the U.S. dollar accepted in Canada? Learn about the legal and practical aspects of using U.S. dollars in Canadian transactions.
  3. Financial Advisor

    Is Now the Right Time to Buy Canadian Stocks?

    Learn about the Canadian stock market and why it has declined over the past five years. Understand if now is a good time to invest in Canadian stocks.
  4. Financial Advisor

    Looking for Good Investments in Canada? Try These Stocks (BAM, CTC.A)

    Discover why investing in Canadian stocks makes sense and which Canadian companies to invest in even with oil prices at multi-year lows.
  5. Investing

    The Foreign Exchange Interbank Market

    Can your forex broker offer you the most competitive pricing? Learn how the market's biggest players affect you.
  6. Personal Finance

    Quiz: Are Your Finances Above Average?

    We look at average Canadian debt, credit scores and much more so you can find out how you stack up.
  7. Investing

    5 Ways To Get A Fair Price For Your Gold

    The price of gold continues to go higher and higher. When is the right time to sell, and how do you know if you're getting a good deal?
  8. Investing

    Toronto Stock Exchange: Safest Investment In The World?

    Canada, one of the wealthiest countries, is also one of the safest places to invest.
RELATED FAQS
  1. Repo agreements versus vs. reverse repo agreements

    Learn about repurchase agreements and reverse repurchase agreements, their risks and tax implications, and where the Federal ... Read Answer >>
  2. What are the implications of a high Federal Funds Rate?

    Learn the implications of a high federal funds rate, which include constriction of the money supply, a stronger dollar and ... Read Answer >>
  3. What are the differences between the Federal Funds Rate and LIBOR?

    Learn the key differences between the federal funds rate and the London Interbank Offered Rate, including currency denomination ... Read Answer >>
  4. What are the implications of a low Federal Funds Rate?

    Find out what a low federal funds rate means for the economy. Discover the effects of monetary policy and how it can impact ... Read Answer >>
Hot Definitions
  1. Fibonacci Retracement

    A term used in technical analysis that refers to areas of support (price stops going lower) or resistance (price stops going ...
  2. Ethereum

    Ethereum is a decentralized software platform that enables SmartContracts and Distributed Applications (ĐApps) to be built ...
  3. Cryptocurrency

    A digital or virtual currency that uses cryptography for security. A cryptocurrency is difficult to counterfeit because of ...
  4. Financial Industry Regulatory Authority - FINRA

    A regulatory body created after the merger of the National Association of Securities Dealers and the New York Stock Exchange's ...
  5. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs are often issued by companies seeking the capital to expand ...
  6. Cost of Goods Sold - COGS

    Cost of goods sold (COGS) is the direct costs attributable to the production of the goods sold in a company.
Trading Center