December 8, 2025Advisory Notice A25-020
Testing for FTSE Canada Bank Credit Index Futures (BCS)
Bourse de Montréal Inc. (the "Bourse") wishes to inform market participants that it aims to launch its new FTSE Canada Bank Credit Index Futures ("BCS") in Q1 2026, subject to the completion of the self-certification process established under the Derivatives Act and to obtain any necessary final regulatory approvals.
The launch of Credit Futures will complement the current yield curve futures and offer an exchange-traded tool to manage Canadian credit risk. More information about the product is available at: https://app.m-x.ca/bcs/.
GENERAL TEST ENVIRONMENT (GTE)
In preparation for launch, the FTSE Canada Bank Credit Index Futures is now available for testing in the GTE environment under the symbol BCS. The Bourse invites market participants and key stakeholders to test their systems accordingly. The new contract specifications can be found below.
GTE environment listing:
| Product | Product Symbol | External Symbol | Contract Month |
| FTSE Canada Bank Credit Index Futures | BCS | BCSM26 | June 2026 |
| BCSU26 BCSM26BCSU26 |
September 2026 June to September roll strategy |
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| BCSZ26 BCSU26BCSZ26 |
December 2026 September to December roll strategy |
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| BCSH27 BCSZ26BCSM27 |
March 2027 December to March roll strategy |
The Bourse will initially list four quarterly contract months. The BCS contract and related strategies opening time will be 7:00 am (ET). See below for product specifications and more details.
The contracts will be added to the High Speed Vendor Feed (HSVF) and Order Book Feed (OBF) using the current messaging protocols three business days before the target launch date to allow vendors to refresh their dictionaries and data repositories. All information on the new contracts will be made available at www.m-x.ca on the first trading day.
| SPECIFICATIONS | |
| Underlying | The FTSE Canada Bank Credit Spread Index |
| Symbol | BCS |
| Trading Unit | Based on the underlying index, such that each basis point of credit spread = $50 per contract. The contract size is C$5,000 x the Contract Index |
| Expiry Cycle | March, June, September and December Each contract expiry has its own associated Index series |
| Price quotation | Quoted in terms of a Contract Index equal to 100 points minus the Underlying Index (expressed in %) For example, a FTSE Canada Bank Credit Index value of 87.50 shall correspond to a credit spread of 0.8750% and a contract price of 99.125 |
| Settlement date | The third Wednesday of the expiry month |
| Last Trading Day | Trading ceases at close of trading on the business day preceding the 3rd Wednesday of the contract expiry month |
| Final settlement price | 100 - FTSE Canada Bank Credit Spread Index value (of the contract associated Index series) on the last trading day |
| Minimum Price Fluctuation | 0.005 Contract index points = C$25 |
| Position Reporting Threshold | 250 contracts |
| Position Limit | Information on position limits can be obtained from the Bourse as they are subject to periodic changes. See Circulars. |
| Minimum Margin Requirements | Information on minimum margin requirements can be obtained from the Bourse as they are subject to periodic changes. See the Futures contracts margin rates page on the Regulatory Division website. |
| Trading Hours | Regular session: 7:00** a.m.to 4:30 p.m. ET. Note: During early closing days, the regular session closes at 1:30 p.m. ** ± 15 seconds |
| Clearing Corporation | The Canadian Derivatives Clearing Corporation (CDCC) |
The complete initial contract listing will be communicated prior to launch.
If you require additional information regarding this notice, please contact us at the address below.
Derivatives Operations
Toll-free: 1-877-588-8489
Local: 514-871-7872
Email: derivatives.operations@tmx.com