Refinitiv Benchmark Services (UK) Limited issues CDOR cessation notice
Refinitiv, an LSEG business, announces that Refinitiv Benchmark Services (UK) Limited (RBSL), the benchmark administrator of the Canadian Dollar Offered Rate (CDOR), has published a CDOR cessation notice stating that the calculation and publication of all tenors of CDOR will permanently cease immediately following a final publication on Friday June 28, 2024.
Publication of the CDOR cessation notice follows the issuance of a white paper, dated December 16, 2021, by the Canadian Alternative Reference Rate working group (CARR). The CARR white paper recommended the cessation of CDOR and a public consultation conducted by RBSL requested feedback from users of, and stakeholders in, CDOR regarding the impact of any potential cessation of CDOR.
As a critical benchmark and an interest rate benchmark under CSA Multilateral Instrument 25-102 Designated Benchmarks and Benchmark Administrators, the permanent cessation of CDOR requires the authorization by the Ontario Securities Commission (OSC) and the Autorité des marchés financiers (AMF). This authorization has now been granted by the OSC and the AMF.
Publication of the CDOR cessation notice constitutes an “Index Cessation Event” under the ISDA 2020 IBOR Fallbacks Supplement and the ISDA 2020 IBOR Fallbacks Protocol.
Publication of the CDOR cessation notice also constitutes an “Index Cessation Event” under CARR’s recommended fallback language for floating rate notes.
Shirley Barrow, CEO of RBSL, said:
“Today’s publication of the CDOR cessation notice announcing a permanent cessation of CDOR immediately following a final publication on Friday June 28, 2024, is a significant development for both the Canadian and the international financial markets. CARR has proposed a two-stage plan for the adoption of CORRA and has announced a consultation regarding the creation of a Term CORRA benchmark.
Both are important steps in the process of transitioning away from CDOR to CORRA over the next two years. RBSL looks forward to supporting CARR and CDOR stakeholders as the transition plan is implemented between now and Friday June 28, 2024.”