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Publication of the Canadian dollar offered rate (CDOR), Canada’s primary interest rate benchmark, should end after June 2024, the working group helping to transition Canadian financial markets to risk-free benchmark interest rates said on Thursday.
The Canadian Alternative Reference Rate working group (CARR) recommends that Refinitiv Benchmark Services (UK) Limited (RBSL), the administrator of CDOR, cease publication of all of the interest rate benchmark’s remaining tenors after June 30, 2024
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The decision to cease using CDOR ultimately lies solely with RBSL. CARR proposes a two-staged approach to the transition from CDOR.
The first stage would run until June 30, 2023, when the working group would expect all new derivative contracts and securities to have transitioned to using CORRA. That date is also when all remaining U.S. dollar Libor tenors are due to cease.
The second stage to June 30, 2024, would provide firms with additional time to transition their loan agreements and deal with potential issues.
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The bidding group includes Sixth Street, Pimco and KKR.
