THE FUTURE OF CDOR?
On December 16, 2021, the Canadian Alternative Reference Rate working group (CARR) published a White Paper recommending June 2024 as cessation date for the Canadian Dollar Offered Rate (CDOR).
CDOR is recognized as a critical benchmark in Canada and is an important interest rate benchmark in both the Canadian and international financial markets. Refinitiv Benchmark Services (UK) Limited (RBSL) is the administrator of CDOR.
CARR suggests a phase out of CDOR in two stages, with market participants ending use of CDOR in new derivatives and securities by June 2023, while remaining legacy exposures would be transitioned by the end of June 2024.
On January 20, 2022, CARR representatives will meet with IIAC staff and members of our Debt Markets Committees to present their analysis and to discuss the potential implications for market participants, should CARR’s recommendation be accepted by RBSL.
For additional information contact Jack Rando.