CARR welcomes RBSL’s decision to cease publication of CDOR after June 28, 2024
Today, Refinitiv Benchmark Services (UK) Limited (RBSL), the regulated administrator of CDOR, announced that it will stop publishing CDOR after June 28, 2024. Along with this announcement:
- The Ontario Securities Commission and the Autorité des marchés financiers today issued notices authorizing RBSL to cease publication of CDOR after June 28, 2024.
- The International Swaps and Derivatives Association (ISDA) has confirmed that RBSL’s statement constitutes an “Index Cessation Event” under its IBOR fallbacks supplement. The announcement also serves to trigger the fallback spread adjustment for CDOR-based floating rate notes that have CARR-recommended fallback language.
- The Office of the Superintendent of Financial Institutions (OSFI) has released its oversight expectations for federally regulated financial institutions (FRFIs) and federally regulated private pension plans during the transition from CDOR.
The Canadian Alternative Reference Rates Task Force (CARR) welcomes RBSL’s decision and the clarity it brings to Canadian financial markets.
“Today’s announcement from RBSL provides clear direction for market participants to move their business away from CDOR. It sets in motion the two-step transition timeline that CARR outlined in its December white paper with the transition of derivatives and securities to CORRA by the end of June 2023, with an additional year for the transition of lending products before CDOR ceases to be published,” said CARR Co-Chairs Karl Wildi and Harri Vikstedt. LIBOR. CARR will work closely with all stakeholders to achieve a seamless and efficient transition through the end of CDOR in June 2024.”
Following RBSL’s decision, CARR is also publishing two supporting documents today:
- A transition roadmap that outlines the processes and timelines required to transition CDOR for Canadian market participants.
- A consultation for a potential forward-looking CORRA futures benchmark to replace CDOR in certain types of lending facilities. This consultation will form the basis of any decision to create such a rate and will be open until June 13, 2022.
“The CDOR has long been an essential reference in Canada. The end of its publication is an important step in the global migration to risk-free rates, which will help our financial system remain robust and resilient in the decades to come. The transition to CORRA will be led by CARR, but its success will require a collaborative effort from all Canadian institutions exposed to CDOR,” said Bank of Canada Governor Tiff Macklem.
About CARR
Canada created CARR, a task force sponsored by the Canadian Fixed Income Forum, to coordinate reform of Canadian benchmark interest rates. CARR’s mission is to ensure that Canada’s benchmark interest rate regime is robust, resilient and effective in the years to come. During the upcoming transition period, CARR will support the transition from CDOR to CORRA as a key financial benchmark, including working towards the eventual creation of an IOSCO-compliant forward CORRA rate.
Visit the CARR webpage for up-to-date transition information, including all key CARR documents, and to sign up to receive email updates from CARR.
